Global technology giants Apple and NVIDIA plan to move part of their semiconductor manufacturing to Intel foundries to meet political requirements and reduce supply chain risks while maintaining high end production with Taiwanese partners
The global semiconductor supply chain undergoes a fundamental transformation because companies now stop depending exclusively on one fabrication partner. Digitimes reports that American technology companies Apple and NVIDIA are making plans to establish manufacturing operations in different locations from their current ones. The company decides to shift part of its production operations to Intel foundries because it needs to achieve manufacturing targets established by the Trump administration while reducing risks that might arise from upcoming tariff enforcement.
NVIDIA has established a timetable for its Feynman architecture which will become available in 2028. The Taiwan Semiconductor Manufacturing Company will continue to manage the main graphics processing units while Intel will take over the production of auxiliary input output parts. For these additional dies, NVIDIA has decided to use the Intel 14A and 18A nodes. Advanced packaging work distribution will undergo a transformation because Intel will manage approximately 25 percent of packaging operations through its EMIB technology while its Taiwanese partners will continue with standard packaging procedures.
The firms which operate in this sector follow a strategy that requires them to execute risk management procedures during their development activities. Supply chain experts report that both Apple and NVIDIA focus on maintaining low risk operations by assigning Intel responsibility for less important components while they reserve their high value silicon for their exclusive Taiwanese partner. Apple now returns to Intel for its M series processor production after the company had stopped using Intel processors. Apple made this policy change because it moved away from Intel silicon in 2020 to develop better control over its complete internal system.
The reasons why companies use dual foundry systems include multiple factors. The political requirement to back American manufacturing forces companies to adopt this strategy because it protects them from possible supply chain interruptions which result from using a single supplier. Intel develops its 14A process to fulfill the technology requirements of major companies which will trust it only after this process achieves production requirements. Major companies like Google Microsoft and Qualcomm are investigating split fabrication systems to use as backup systems which will support their manufacturing operations at all times.
Some experts believe this move toward Intel provides a competitive advantage to Taiwan Semiconductor Manufacturing Company instead of posing a danger to its operations. The Taiwanese company can use Intel production to decrease its antitrust and market monopoly worries through this strategy. The industry leader uses its non core orders to reduce lower margin work which enables it to concentrate on top end premium silicon market where it holds clear technological superiority. The company uses this shift to create a political protection system which enables it to retain control over the semiconductor market's highest value segments.
The transition will only occur if Intel meets its yield rate and performance targets for the 14A node by 2028. The technology industry currently observes a situation in which companies balance their need to comply with political requirements against their need to protect supply chains while established fabrication methods provide proven reliability. The upcoming 2028 production period will determine whether American semiconductor manufacturers will continue using their dual sourcing strategy during the following ten years.
