Apple and Intel ink deal for chip manufacturing to fill tightening TSMC supply
Apple Inc. has reached a preliminary agreement with Intel Corp. to manufacture some of its future chips.
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| File Photo: MacBook Neo in Citrus |
A Strategic Move for Supply Chain Diversification?
Under the agreement, Intel will act as a foundry, producing chips based on Apple's own designs. This is similar to Apple's long-standing arrangement with Taiwan's TSMC.
Apple began moving away from Intel processors in 2020 when it launched its own custom Apple Silicon for Mac computers. The transition delivered strong performance and efficiency gains, helping differentiate its products. However, growing concerns over supply chain risks - particularly reliance on a single advanced manufacturer in Taiwan - have prompted Apple to explore additional partners.
The deal supports Apple's efforts to build greater resilience while aligning with the broader U.S. initiatives to strengthen domestic semiconductor manufacturing amid geopolitical tensions. Intel, which has received significant federal backing, including a USD 9 billion grant, stands to benefit as it expands its foundry business.
Investors responded enthusiastically to the report, where Intel's stock surged sharply. Reports claim gains reach up to 19 percent and hit all-time highs.
Apple has yet to publicly detail its diversification plans, but the move is seen as a practical step to reduce potential vulnerabilities without abandoning its successful in-house chip design.
Neither Apple nor Intel issued official statements confirming the deal, which remains in its preliminary stage. Industry analysts expect details to emerge in the coming months, with possible production ramp-up as early as 2027.
This potential reunion between Apple and Intel highlights how former competitors in the processor space can become collaborators in today's complex global supply chains. The partnership could ultimately lead to more stable product availability and further innovation in chip manufacturing.
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