You'll never believe which foundry will build the iPhone 18's processor according to bonkers report
Apple started relying on TSMC to build its chips in 2014. That was the year that the tech giant released the A8 application processor (AP) for the iPhone 6, iPhone 6 Plus, iPad mini 3, and iPad Air 2. The A7 chipset was built by Samsung Foundry. The relationship between Apple and TSMC has continued to grow to the point where Apple is now the contract foundry's largest customer as Apple uses the firm to build its other chips such as the M-series processors.
It's hard to see anything breaking up the relationship between Apple and TSMC especially since the latter has reportedly given Apple some perks every now and then. For example, Apple was able to reserve all of TSMC's first-gen 3nm production allowing the iPhone 15 Pro and iPhone 15 Pro Max to be the only smartphones manufactured in 2023 to be powered by a 3nm AP.
TSMC also reportedly covered payments for defective first-generation 3nm chips produced by TSMC for Apple that did not pass quality control. Traditionally, the chip designer, in this case Apple, is the one on the hook for the cost of manufacturing a chip that ends up in the reject bin.
Silicon wafer used in the production of semiconductors by Intel Foundry. | Image credit-Intel
According to a new report published on Friday, Apple could turn away from TSMC and have Intel manufacture the AP for the iPhone by 2026 when the A20 chipsets are expected to be produced for the iPhone 18 series. Apple will have next year's A19 and A19 Pro APs produced by TSMC using the latter's third-generation 3nm node (N3P). The 2026 A20 and A20 Pro were expected to be made by TSMC using its 2nm node.
As far as this rumor is concerned, it is completely bogus. Perhaps the thought is that Apple would prefer to use Intel's A18 (1.8nm) process node for the A20 chips as opposed to TSMC's 2nm node. I don't see this happening at all. Intel's reputation as a contract foundry is not anywhere close to TSMC's reputation and even this year Intel continues to outsource production of its 3nm Arrow Lake processors to TSMC.
The only circumstance where we can envision Apple leaving TSMC for another foundry would be if Taiwan is attacked or the president issues an Executive Order demanding that a certain percentage of chip production be made in the U.S. Don't immediately write off the possibility of that happening. After all, President-elect Donald Trump recent accused TSMC of stealing the U.S. chip industry.
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