Whatever else one might think of President Trump, it is plain as day that he is a connoisseur at shaping narratives. And, apparently, the President seems to have played a material role in selling an Intel deal to Apple, one that might accrue sizable short- and long-term benefits to the Cupertino-based tech giant.
Apple's chip fabrication deal with Intel entails sizable margin benefits, reduces supply chain risks, and weakens TSMC's monopoly
Apple has reached a preliminary chip fabrication deal with Intel, according to the Wall Street Journal. While the specifics of this agreement are not known at this time, it 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.
It also remains unclear at this stage exactly which Apple products will get their silicon from Intel. At any rate, Apple is likely to leverage 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, as per a tip from GF Securities and DigiTimes a few months back.
Do note that Apple has reportedly procured PDK samples from Intel to evaluate its 18A-P process. GF Securities also believes that Apple's upcoming ASIC - dubbed Baltra and expected to launch either in 2027 or 2028 - will leverage Intel's EMIB packaging.
Given the margin hit that Apple now faces by asking TSMC to restart the production of A18 chips for the current-gen MacBook Neo, it makes perfect sense for the Cupertino-based tech giant to power its next-gen MacBook Neo with Intel's Core Series 3 chips, which bear the codename Wildcat Lake. Of course, in the absence of a formal confirmation, these possible moves remain firmly ensconced within the speculative realm.
This brings us to the core of today's topic. According to the Wall Street Journal, President Trump appears to have played an important role in selling a possible deal to Apple's Tim Cook, having asserted in a meeting that he liked Intel and that the government had made "tens of billions of dollars" from its stake in the chipmaker.
What's more, even from a pure economic perspective, this deal makes too much sense for Apple. Firstly, Intel's 18A wafer prices are reportedly 25 percent below what TSMC is charging for its 2nm wafers. Secondly, this could give Apple substantial breathing room amid the ongoing memory 'chipflation.' Thirdly, the deal partially neutralizes supply chain- and tariff-related risks for Apple, while weakening TSMC's ability to charge monopolistic prices. Of course, all depends on the stability of Intel's 18A process.
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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