Intel lands preliminary Apple chip deal

Apple and Intel have reached a preliminary agreement for Intel to manufacture some chips used in Apple devices, according to a May 8 Reuters report that cited a Wall Street Journal account of the talks. Reuters said the companies had been in intensive discussions for more than a year and settled a formal preliminary deal in recent months. Intel and Apple both declined to comment, and neither company has identified which chips or products are covered. The reported arrangement would put Intel in the role of foundry — manufacturing chips designed by Apple rather than supplying Intel-branded processors. That distinction matters because Apple moved its Mac lineup away from Intel central processors in recent years and toward in-house silicon, while still relying on outside manufacturers to fabricate those designs. Reuters said the reported deal would reunite the companies in a different part of the semiconductor stack. (money.usnews.com) ### How is this different from Apple’s old relationship with Intel? Apple’s earlier relationship with Intel centered on Intel-designed processors in Mac computers, not on Intel acting as a contract manufacturer. Reuters said the new preliminary agreement concerns “some chips for Apple devices,” with Intel producing Apple-designed silicon through its foundry business. (money.usnews.com) Apple currently depends heavily on Taiwan Semiconductor Manufacturing Co. for its most advanced chips, according to Reuters and CNBC. CNBC reported that Apple relies solely on TSMC for the most advanced chips in its devices, while Reuters said a deal with Intel could help Apple diversify its manufacturing base as demand for advanced capacity remains high. ### Why is Apple looking beyond TSMC now? (money.usnews.com) Tim Cook said on Apple’s most recent earnings call that iPhone sales had been held back by supply constraints at its contract manufacturer, Reuters reported. TrendForce, citing Bloomberg, said Apple executives had described limited chip availability as weighing on growth and said Apple has been exploring alternatives as TSMC capacity stays tight. (cnbc.com) TrendForce also said Apple had held preliminary discussions with Intel and visited Samsung’s Texas facility as part of a broader effort to add alternative production partners. The report said those engagements were still preliminary and had not yet produced orders at that stage. (money.usnews.com) ### What does Intel get if the deal holds? Intel shares rose 15% on May 8 after the Reuters report on the Apple agreement. CNBC reported the stock climbed nearly 14% that day and said investors viewed the potential Apple business as a major endorsement of Intel’s foundry push. Intel has been trying to rebuild its contract manufacturing business after falling behind TSMC in advanced production. (trendforce.com) Reuters said an Apple contract would give Intel a steady stream of demand from one of the world’s largest consumer-electronics companies and bolster a foundry operation that has struggled to win major outside customers. (money.usnews.com) ### Did the U.S. government play a role? Reuters reported that the U.S. government played a major role in bringing Apple to the negotiating table, citing the Wall Street Journal’s account. Reuters also cited an administration official as saying the government had been trying to help Intel and “drum up business” for the company, while declining to speak specifically about the reported Apple-Intel deal. (money.usnews.com) Reuters said Commerce Secretary Howard Lutnick met repeatedly over the past year with senior Apple officials, including Cook, as well as SpaceX’s Elon Musk and Nvidia’s Jensen Huang, to encourage them to work with Intel. Reuters also said the reported tie-up would align with Washington’s push to expand U.S. semiconductor manufacturing. (money.usnews.com) ### What is still unconfirmed? Neither Apple nor Intel has identified the chip categories, production volumes, process technology or launch timing tied to the preliminary agreement. Reuters said it was unclear which Apple products Intel would make chips for. CNBC cited analyst Ben Bajarin as saying he believed the arrangement would happen but did not know when, and he speculated Apple might wait for a later Intel process variant rather than move immediately. (money.usnews.com) That timing view was Bajarin’s, not a company confirmation. Intel has said separately that its 18A process is entering high-volume production in Arizona for its own products, including Panther Lake, according to the company’s October 2025 announcement. But Intel has not publicly tied Apple to 18A or 18A-P, and no official filing reviewed here names Apple as a foundry customer. ### Where does Samsung fit in from here? (money.usnews.com) Samsung remains part of Apple’s broader supplier conversations, according to reports cited by TrendForce and DigiTimes. TrendForce said Apple has explored Samsung as another possible manufacturing partner, and DigiTimes said Intel’s reported preliminary Apple deal was putting pressure on Samsung’s foundry ambitions. (intc.com) The next concrete milestone is likely to be a company filing, earnings-call disclosure or formal announcement naming a product, process node or factory. Until then, the reported Apple-Intel arrangement remains preliminary, with product scope and timing still undisclosed by both companies. (money.usnews.com) (trendforce.com)