Apple’s next big chip move might not be about raw performance first — it may be about leverage.
According to analyst Ming-Chi Kuo, Apple is reportedly lining up orders for Intel’s 18A-P process as part of a wider plan to reduce its dependence on TSMC. The timing is interesting: TSMC is currently enjoying massive demand from AI and high-performance computing customers, especially companies building advanced processors for data centres.
In simple terms, NVIDIA and the AI boom are now taking up more oxygen in the chip foundry room. And if TSMC’s most profitable future is increasingly tied to AI/HPC chips instead of smartphone processors, Apple cannot just assume it will always be the most important customer at the table.
Why Apple is looking at Intel again
TSMC has been Apple’s key partner for advanced chips for years, powering iPhones, iPads, Macs and more. That partnership works because TSMC can produce cutting-edge silicon at huge scale — something very few companies can do consistently.
But Kuo believes Apple is moving early before its bargaining power weakens. Reports have suggested Apple’s Intel arrangement is also linked to supply chain diversification, with political pressure from the Trump administration reportedly part of the backdrop.
Kuo says Apple’s Intel 18A-P orders appear to be spread in a way that matches Apple’s product mix. That suggests this is not just a tiny experiment for show. It looks more like Apple testing whether Intel can eventually become a serious second source, while also learning how to work with Intel’s newer foundry processes.
The key point: Apple does not need to dump TSMC to gain negotiating power. It only needs a believable alternative.
AI is changing the foundry game
For years, Apple’s iPhone volume gave it huge weight with suppliers. If you were in Apple’s supply chain, the upside was massive — but the pressure was also brutal. Apple is famous for squeezing suppliers hard, demanding scale, efficiency and dedicated investment.
Now the situation is shifting. TSMC’s most advanced capacity is increasingly valuable to AI chip customers, where margins and long-term demand could be very attractive. If AI/HPC revenue keeps pulling ahead of smartphones, Apple risks becoming less dominant in TSMC’s priority list.
That is why Intel’s 18A-P matters. Even if Intel has to prove itself, Apple investing time into that relationship gives Cupertino another card to play when negotiating prices, capacity and roadmap access with TSMC.
Kuo also points to wider industry movement away from relying too heavily on Taiwan-based production. Samsung is pushing hard into leading-edge chip manufacturing, while new US semiconductor policies are encouraging more domestic chip capacity.
Why Malaysia and SEA readers should care
This may sound like high-level corporate chess, but it can still affect us directly in Malaysia and SEA.
If Apple secures more flexible chip supply, future iPhone, iPad and Mac availability could be more stable during major launch windows. That matters here because local pricing and stock often get squeezed when global supply is tight. Anyone who has waited for a specific iPhone Pro colour or MacBook configuration knows the pain.
There is also a bigger tech angle. AI demand is not just about data centres somewhere far away. It is reshaping the entire semiconductor supply chain — the same chain that affects gaming laptops, handheld PCs, smartphones, GPUs and even creator gear sold in Malaysia.
If TSMC capacity becomes harder to secure because AI customers are paying big, consumer devices may face higher costs or slower transitions to newer chip nodes. Apple building a second path through Intel could help protect its own product roadmap, but it also signals that every major hardware company is preparing for a more competitive chip era.
For now, this is not a “your next iPhone will definitely use Intel” story. It is more strategic than that. Apple seems to be making sure it does not get boxed in while AI money floods the foundry market.
Smart move, honestly. In semiconductors, having only one premium supplier is comfortable — until everyone else wants the same factory slot.
Source: Wccftech Gaming