In what is nothing short of a veritable earthquake, Apple has finally signed a preliminary chip-making agreement with Intel, adding critical optionality within its supply chains at a time when TSMC's advanced node capacity largely remains choked.
Apple and Intel formalize their rumored chip-making tie-up via a preliminary agreement
According to the Wall Street Journal, Apple and Intel have now reached a preliminary agreement, whereby the silicon powering some of Apple's devices will be fabricated within Intel's fabs.
It remains unclear at this stage exactly which Apple products will get their silicon from Intel. At any rate, the agreement is likely to resemble the one between Apple and TSMC, where the former designs custom chips based on ARM's intellectual property, while the latter fabricates them on its advanced node lines.
Of course, today's development is the result of a year-long discussion between Apple and Intel as the iPhone giant continues to try to create options within its supply chains. As a part of this strategy, Apple has also held prospective discussions with Samsung.
Do note that in recent months, both GF Securities and DigiTimes have disclosed that Apple might opt for Intel's 18A-P process for its lowest-end M-series chips that are expected to ship in 2027, as well as non-Pro iPhone chips in 2028. GF Securities also went a step further by noting that Apple's bespoke ASIC - expected to launch either in 2027 or 2028 - will leverage Intel's EMIB packaging.
We reported a few months back that Apple had signed an NDA with Intel to procure PDK samples of its advanced 18A-P process for evaluation purposes. Do note that Intel's 18A-P process is its first node to support Foveros Direct 3D hybrid bonding, which allows for stacking multiple chiplets through TSVs.
Even so, Apple now appears to be going beyond one-off, product-based chip fabrication partnerships and actively searching for viable ex-TSMC options.
This comes as Apple conceded during its latest earnings call last week that it'll take several months for the supply of Mac Studio and Mac mini devices to catch up with demand, pointing to agentic AI as a major source of demand for these products.
As a parting anecdote, do note that Apple had severed virtually all ties with Intel in June 2023 when it discontinued its Intel-powered Mac Pro. This means that Apple is now returning to Intel after years of a deteriorating relationship and a complete absence of any commercial links between the two for the past three years.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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