Apple is considering a shift in its chip strategy after a 12-year partnership with TSMC. The tech giant is exploring options to manufacture its lower-end processors with a different supplier, potentially Intel. This move comes as TSMC's focus on AI companies like Nvidia has intensified, leading to increased competition for chip supply.

Previous rumors suggest Intel could start supplying Apple's non-pro iPhone models starting in 2027 or 2028, potentially providing A21 or A22 chips. This partnership, if realized, would mark a significant change in Apple's supply chain strategy, which has been exclusively reliant on TSMC since 2014.

Apple's potential return to Intel for chip fabrication is driven by the need to diversify its supply chain. Nvidia's rise as TSMC's largest customer has put pressure on Apple to secure reliable chip supplies, especially as memory chip prices continue to rise. This shift could help Apple mitigate the impact of increasing costs on its gross margins.

The exploration of alternative suppliers highlights Apple's proactive approach to managing its supply chain amid the AI server boom. As competition for chip production intensifies, Apple's move to diversify its sources could be a strategic preemptive measure to ensure stability in its product pipeline.