Apple and Intel are close to finalizing a preliminary agreement that would allow Intel to manufacture part of the chips used in Apple devices, in what could become a major shift in the global semiconductor industry.
Talks between the two companies continued for more than a year before reaching a formal framework in recent months.
Intel shares jumped around 14% following the reports, while Apple shares rose more than 2%, reflecting investor optimism over the potential impact of the deal on Intel’s manufacturing business.
If completed, the agreement would mark the first time Apple relies on a second advanced supplier for chip production after years of near-total dependence on Taiwan’s TSMC.
Details
- The move comes as global chip manufacturing capacity faces mounting pressure from the AI boom and surging demand from major technology companies.
- Intel is trying to rebuild its position in the semiconductor manufacturing market by expanding its U.S. factories, particularly in Arizona, where it has started large-scale production using its advanced 18A process technology.
- Analysts believe Apple may wait for Intel’s upgraded 18A-P process before moving large-scale production, with expansion potentially beginning as early as next year.
- The potential agreement represents a strategic shift for Apple, which currently depends on TSMC to produce the most advanced chips powering iPhones, Macs, and iPads, while Washington pushes to strengthen domestic manufacturing and reduce reliance on Asian supply chains.
- The deal would also give Intel a significant boost after years of delays and weak yields in its foundry operations, which until recently relied mainly on producing chips for Intel’s own products.
What’s Next?
Markets are watching whether the two companies will move from a preliminary agreement to full production contracts, as well as which Apple devices could eventually use chips manufactured by Intel and how that may affect the balance of power with TSMC.
