Intel Wants Apple Back, but Trust Is the Real Foundry Test

Apple began the shift of Mac to the Intel alternative starting from 2020, delivering a harsh blow to its once-valued partner. TSMC was among the most significant beneficiaries of this transition. It gained control over the fabrication of Apple Silicon while furthering their partnership founded on discretion.

That trust has deep roots. Years ago, Apple explored Intel as a possible chip manufacturing partner. Yet Morris Chang, the founder of TSMC, doubted Intel could give Apple the confidentiality it expected. By 2011, Apple had chosen TSMC. Today, that old concern has returned.

Intel Turned a Sales Pitch Into a Trust Problem

Intel now wants major outside customers for its foundry business. Apple is one of the most valuable names it could attract.

The company recently tried to convince Apple that it could expand production capacity quickly. Intel told Apple that it was already speaking with equipment suppliers.

It is clear from the information provided by Intel to its suppliers. The company showed its supplier relationship management problem when it asked its suppliers to give it access to their manufacturing facilities as a current customer.

This point should be taken into account because it clearly shows that Intel cannot keep information about its products. Everyone who knows something about Apple knows how carefully it keeps information about its future products.

TSMC takes a very different approach. It rarely talks publicly about specific customer relationships and does not compete directly with the companies whose chips it manufactures.

Our Expert View

It would take Apple quite some time to leave TSMC. However, the political pressure related to making even more sophisticated chips in America can become an opportunity for Intel again.

As a consumer, you may benefit from such diversity in manufacturing of your product in the long term, but if Apple does not want to reveal its secrets to Intel, then this process is going to be delayed significantly.