After more than a year of discussions, Apple and Intel have reached a preliminary agreement under which Intel will manufacture processors for Apple devices, reports The Wall Street Journal.
Intel would make chips based on Apple chip designs, much like TSMC. Previous rumors about Intel’s negotiations with Apple suggested that Intel could make some of the low-end processors used in Apple devices, including the low-end M-series chip used in some iPad and Mac models.
Before Apple adopted Apple silicon, the company used Intel-designed chips for its Macs but faced continued chip delays. Apple now designs its own Arm chips manufactured by TSMC, allowing it to deliver updates at a more regular cadence.
Intel makes its own chips, but also makes chips for other companies. Apple hadn’t considered Intel as a supplier before because it lagged behind other chipmakers like TSMC and Samsung, and because of the history between the two companies. Intel replaced CEO Pat Gelsinger with Lip-Bu Tan last year, and Tan led an effort to revitalize Intel’s chipmaking business.
Tan focused on Intel’s most advanced process node, the 14A, which will reach production in 2028. Intel is seeking customers for its 1.4nm 14A node. Intel also makes 18A chips built on a 1.8nm node, as well as chips built on older process nodes.
Apple is working to diversify its supply chain, as Taiwan Semiconductor Manufacturing Co. (TSMC) is currently its sole manufacturer of Apple silicon. During Apple’s latest earnings conference call, CEO Tim Cook said iPhone 17 models were limited during the quarter because Apple couldn’t get enough A19 and A19 Pro chips from TSMC.
TSMC is one of the largest chipmakers in the world, and in addition to making chips for Apple, it makes chips for other companies like Nvidia. With the AI boom and huge demand for AI servers, TSMC has more limited capacity for chips for consumer devices, and Apple has less leverage to convince TSMC to make its chips.