TSMC to remain top Apple chipmaker despite reported Intel deal: Experts

Taipei, May 10 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to remain Apple's primary chip manufacturing partner despite reports that Apple could shift some orders to Intel, Taiwanese industry experts said Sunday.

The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices.

Liu Pei-chen (劉佩真), an economist with the Taiwan Institute of Economic Research, said TSMC's advanced packaging technologies, including InFO and CoWoS, remain critical to the performance of Apple's A-series and M-series chips.

She said Intel and Samsung Electronics still lag behind TSMC in areas such as chip yields and power efficiency, making it difficult for Apple to move flagship chip orders away from the Taiwanese foundry in the near term.

Liu added that Apple and TSMC have built deep technological ties over the years, creating a high barrier for competitors. Unless rivals achieve major breakthroughs in 2-nanometer or gate-all-around (GAA) technologies, TSMC is expected to remain Apple's preferred manufacturing partner.

While Intel is pushing its Intel 18A process and Samsung is seeking opportunities through its 2nm GAA technology, Liu said both companies have previously struggled with issues such as unstable yields and excessive power consumption during large-scale production.

She said TSMC's leading position remains difficult to challenge due to its stable delivery record and extensive research and development capabilities. For Apple, shifting core chip orders too early could pose significant supply chain risks.

President Capital Management Co. Chairman Li Fang-kuo (黎方國) also told CNA that Apple's reported move was not due to problems with TSMC's technology, but rather because strong demand for advanced processes from artificial intelligence chip customers such as NVIDIA has tightened TSMC's production capacity.

Li said the situation reflects TSMC's dominant position in advanced chip manufacturing, with demand currently exceeding supply across the industry.