I think you've hit the nail on the head there - but that is a question of psychology, and not technology. That is, we're trying to figure out strategy decisions rather than technical ones (though they're deeply informed by the ground truths of the technology).I'd say that if Eliyan offer functionality that Apple wants AND the cheapest way to get that functionality is through them rather than replicating in-house, they will do so. Why not? How's it different from using TSMC, or Micron, or LG?
So FWIW, my take on this is that they see "manufacturing" as a special case. It comes with a huge number of risks and costs that are best left to those with deep experience, which Apple does not have. It also insulates them, at least partially, from certain unavoidable problems (bad PR due to labor issues). Of course, this isn't entirely black & white - they apparently do small-scale pathfinding work, as for example with microLEDs (and miniLEDs? I don't recall). Or years back, I think, MEMS.
So they will buy what they need to manufacture things, but they'd prefer to have product IP (as opposed to manufacturing IP, which they're more agnostic about) in house.
If Eliyan is way ahead of where they and TSMC have gotten, then that may indeed cause them to take a practical view of matters. (And if so I'll bet they've at least tried to get an option to acquire Eliyan.) But I think it's only stating the obvious to acknowledge that there will be some pressure in the other direction.
So is Eliyan that far ahead? I have no idea about that, and if there was anyone here who did I'd have bet it was you...