Intel asked Apple for permission to make chips for the iPhone, but failed the test task

During an interview on the Acquired podcast, TSMC founder Morris Chan shared the story of the partnership with Apple.

One episode dates back to February 2011, when Apple was considering outsourcing some of its iPhone chip production to Intel. At the time, Intel was still making chips for the Mac. However, the trial production of iPhone processors did not impress Tim Cook.

Chan reported that he spoke with Jeff Williams at the time, who said that the negotiations needed to be suspended for two months because «Intel's senior management had approached Tim Cook and asked him to consider Intel as a partner».

That was all he said, but it didn't really bother me, because in 2011 Intel was no longer the company everyone stood up and bowed to… Of course, I had to accept Jeff Williams' request, but then again, I'm not particularly worried.

— Morris Chan

Later, Cook had lunch with Chan on the Apple campus and told him, «There's nothing to worry about» because Intel doesn't know how to be a contract manufacturer. Chan called the response «very brief, but quite satisfactory».

Chan also shared his thoughts on Intel's reputation with customers at the time:

Before Apple became our customer, I knew many Intel customers in Taiwan – all the PC manufacturers were Intel customers. None of them liked Intel. Intel always acted as if it was the only one in the market.

— Morris Chan

He later added that among Intel customers he knew, everyone dreamed of another supplier.