In a potential watershed moment for its foundry ambitions, Intel has reportedly secured Apple as a customer for future M-series chips.
If finalized, this agreement would see the chipmaker produce low-end processors for MacBook Air and iPad Pro models starting in 2027, cracking Taiwan Semiconductor Manufacturing Company’s (TSMC) long-standing monopoly on Apple Silicon.
Utilizing the 18A process node, the reported partnership would validate CEO Lip-Bu Tan’s aggressive turnaround strategy. It would also align with growing political pressure for supply chain diversification, following recent multi-billion dollar investments from the U.S. government and NVIDIA.
Cracking the Monopoly: A Historic Shift for Apple Silicon
Breaking a decade-long pattern of reliance on a single manufacturing partner, Apple has reportedly signed a non-disclosure agreement (NDA) with Intel to explore fabricating its custom silicon.
According to latest industry surveys cited by Ming-Chi Kuo, Analyst at TF International Securities, discussions reportedly focus specifically on the “lowest-end” M-series processors, likely designated as the M6 or M7.
Destined for high-volume consumer devices rather than performance-critical workstations, these chips target the MacBook Air and iPad Pro lines. Both products drive significant unit sales but do not require the absolute peak performance of the “Pro” or “Max” variants found in the MacBook Pro.
Volume estimates for the contract suggest a substantial baseload for Intel’s factories. Projections indicate that shipments could reach 15 to 20 million units annually across 2026 and 2027.
Securing such a consistent order flow is essential for the economics of semiconductor manufacturing. High utilization rates are the only way to offset the astronomical capital costs of building modern fabs.
Regarding the timeline for this transition, Ming-Chi Kuo points to a ramp-up that allows for extensive validation. He notes: “Apple’s plan is for Intel to begin shipping its lowest-end M processor, utilizing the 18AP advanced node, as early as 2Q–3Q27.”
While TSMC is expected to retain the lucrative high-end orders for iPhone and top-tier Mac chips, this move would break its absolute exclusivity.
Marking a significant departure, the reported Intel partnership represents the first time Apple has sourced logic chips from a foundry other than TSMC since transitioning to its own silicon.
Diversifying even a portion of this volume signals a major strategic pivot in Cupertino.
The ‘Made in USA’ Dividend: Politics Meets Production
Geopolitical pressure is a driving force behind this realignment, with Apple seeking to hedge against risks in the Taiwan Strait. Relying on a single geographic region for the entirety of its processor supply has long been viewed as a critical vulnerability for the world’s most valuable company.
Such a pivot would align perfectly with the Trump administration’s aggressive “Made in USA” industrial policy.
It can secure a domestic supply line while simultaneously earning political capital with a White House that has prioritized reshoring manufacturing.
For industry observers, the alledged deal would however represent more a qualitative milestone rather than an immediate windfall. As Kuo explains: “The significance of winning Apple’s advanced-node orders far exceeds the direct revenue and profit contribution from this business.”
Intel’s position has been significantly bolstered by the U.S. government’s recent intervention. Following a major political crisis in August, Washington converted prior grants into a direct $8.9 billion equity stake, effectively making the government a major Intel shareholder.
The public-private alignment creates a unique incentive structure for American tech giants to support the domestic champion.
For Apple, sourcing chips from Intel’s Arizona facilities can offer a tangible way to demonstrate support for these domestic manufacturing goals. It would mitigate potential tariff impacts and insulates a portion of its supply chain from disruptions in East Asia, a calculation that is as much political as it is operational.
Technical Redemption: Validating the 18A Process
Under the hood, the reported deal hinges entirely on the success of the 18A process node. Representing Intel’s attempt to leapfrog the industry standard, the technology introduces two critical innovations that are essential for mobile efficiency.
First, RibbonFET gate-all-around transistors provide superior control over electrical current, reducing leakage and improving performance per watt. Second, PowerVia backside power delivery moves power wires to the back of the wafer, separating them from signal wires to reduce interference and improve density.
Technical validation is already underway. Apple has reportedly secured early access to Intel’s design tools to simulate chip performance against its exacting standards. Kuo details the status of this engagement:
“Apple previously signed an NDA with Intel and obtained the advanced-node 18AP PDK 0.9.1GA. The key simulation and research projects (such as PPA) are tracking in line with expectations, and Apple is now waiting for Intel to release PDK 1.0/1.1, currently scheduled for 1Q26.”
Countering earlier skepticism, this progress challenges reports that the node was suffering from critical defects, jeopardizing the launch of Panther Lake processors.
The engagement with Apple suggests that process stability has improved enough to satisfy the most demanding client in the semiconductor world.
Fiscal discipline has been central to this technical execution. Since taking the helm, CEO Lip-Bu Tan has enforced a rigorous review of all capital expenditures, cancelling marginal projects to focus resources on 18A.
He famously declared in July when the company announced cutting 25,000 jobs: “There are no more blank checks. Every investment must make economic sense.”
Successful validation by Apple would serve as the ultimate seal of approval for Intel Foundry. It proves to the broader market that Intel’s technology is not just a PowerPoint promise, but a viable alternative to TSMC for cutting-edge designs.
Market Reality: A Long Road to Parity
Despite the symbolic victory, Intel remains years behind TSMC in terms of capacity and advanced node maturity. Strictly limited to “low-end” chips, the reported deal would leave Apple’s flagship performance tied to TSMC’s advanced nodes for the foreseeable future.
Intel would still have to execute flawlessly on its roadmap to prevent Apple from pulling the plug, a fate that befell previous partners who grew frustrated with delays. The foundry business is built on trust, and Intel is still in the early stages of rebuilding its reputation after years of missteps.
As Kuo observes: “Although Intel will still be unable to compete head-to-head with TSMC over the next several years, this suggests that the worst may soon be over for the IFS business.”
Financial impact of an Intel-Apple partnership would be gradual, with revenue from this specific deal not materializing until 2027. However, the signaling value is immediate. It aids Intel’s efforts to court other potential clients, including rivals who are wary of relying solely on TSMC.
Momentum is building elsewhere in Intel’s ecosystem as well. The company recently entered early discussions to manufacture chips for AMD, a scenario that would have been unthinkable just a few years ago.
Additionally, NVIDIA has made a $5 billion investment to co-develop AI infrastructure, further intertwining the fates of the industry’s biggest players.
Investors have reacted positively to both news, pushing Intel stock up significantly. Yet, stronger-than-expected Q3 earnings and new partnerships cannot mask the reality that the foundry division is still losing billions. The Apple deal is a promising start, but the path to profitability remains long and steep.
