The Intel and Apple chip production deal reportedly began with a test of some older chipsets made on Intel’s newer process, launching a testing roadmap extending through 2029.
The relationship between Apple and Intel dates back more than 40 years. That appears to have ended with the advent of Apple Silicon, but the political climate may have tipped the scales in Intel’s favor.
According to a report from supply chain analyst and leaker Ming-Chi Kuo, Intel has begun the testing process to build Apple chips on its 18A-P process. This is apparently the equivalent process used by TSMC for modern Apple chipsets like the A18 Pro.
It will take some time for Intel to reach full production. Kuo suggests that 2026 is the test ramp, with 2027 as the target for full production and shipping.
However, Intel’s production will only be 50-60% in 2027. It will continue to increase until 2028, where it will reach peak production and slow down production until 2029.
This life cycle corresponds to Apple’s needs for its older processors. It will need chips like the A18 Pro for a while for low-end iPhones and Macs. The chip also seems likely for an upgraded Apple TV set-top box.
Kuo says about 80% of the order is for iPhone chips.
TSMC is still the leader in chipsets
Of course, all of this has virtually no bearing on Apple’s overall chip needs. TSMC is still expected to supply more than 90% of Apple’s processors, and that won’t change anytime soon.
There is some pressure to diversify away from TSMC since 60% of its production takes place in Taiwan. As I write this, US President Trump is in talks with Chinese leader Xi Jinping over how the US views Taiwan.
Things don’t seem to be going Taiwan’s way.
Apple is facing additional political pressure from forces in its home country. The United States expects Apple and others to bring more manufacturing and assembly back to the United States. The Intel deal might satisfy the Trump administration, but it might not.
To further complicate matters, the Trump administration took a 10% stake to help keep Intel afloat when it appeared ready to dissolve. Since then, Trump and Intel’s CEO have been going door to door asking American companies to invest directly in Intel.
For Apple, the choice is simple and clear. It won’t hurt to have a small percentage of older chips made by Intel in the United States.
This decision constitutes a clear political victory that meets all expectations at the same time. Intel is an American company supported by the Trump administration and Apple places orders with it.
Moves like these have so far kept Apple out of hot water with the controversial administration. If it wishes to continue business as usual, similar measures will need to be taken regularly.