Apple just broke up with TSMC — Intel will make some iPhone chips
Intel will manufacture Apple chips for the first time, breaking TSMC's exclusive partnership since 2010. The deal could cover iPhone 19 A21 processors and Mac M-series chiplets, with production potentially starting in 2027.
Apple and Intel have reached a formal agreement for Intel to manufacture some chips for Apple devices, according to Wall Street Journal sources. Intel shares closed up 13.93% on the news.
Key Takeaways
- Apple and Intel have reached a formal chip manufacturing agreement according to Wall Street Journal sources.
- Intel shares surged 13.93% on news of the potential Apple partnership deal.
- The agreement could involve A21 chips for iPhone 19 or M-series chiplet silicon manufacturing.
- This marks Apple's first major shift away from exclusive TSMC chip manufacturing partnership.
- No official confirmation has been provided by either Apple or Intel regarding the deal.
What chips will Intel manufacture for Apple?
According to sources, the deal could involve Apple A21 chips destined for the iPhone 19 lineup or M-series chiplet silicon for future Mac products. This represents Intel's entry into Apple's custom silicon supply chain, which has been exclusively dominated by Taiwan Semiconductor Manufacturing Company (TSMC) since Apple began designing its own chips.
The A21 chips would power the next generation of iPhones expected in 2027, whilst M-series chiplets could enable Apple to build more modular, scalable processors for Mac computers. Intel's advanced manufacturing capabilities, particularly its upcoming 18A process node, make it a viable alternative to TSMC's current 3nm production.
Why this deal matters for Apple's supply chain
Apple has relied on TSMC exclusively for its custom silicon since the A4 processor in 2010. The Intel agreement represents the first reported addition of a second foundry partner.
TSMC has manufactured all of Apple's custom silicon since the A4 processor in 2010, including the current A18 Pro chips powering the iPhone 17 family. However, geopolitical tensions and capacity constraints have pushed Apple to explore alternatives. Intel's foundry services, bolstered by US government support, offer domestic manufacturing capabilities that align with Apple's risk management strategy.
What this means for Intel's foundry business
Intel's foundry services division has struggled to attract major customers, According to Intel's latest financial reports, the foundry business recorded losses whilst competing against TSMC and Samsung for external customers.
The Apple deal could provide Intel with the scale and revenue needed to compete effectively in contract manufacturing. Intel has been investing heavily in new fabs and advanced process technologies to challenge TSMC's dominance.
Timeline and implementation details remain unclear
Neither Apple nor Intel has officially confirmed the agreement, and specific implementation timelines remain undisclosed. Industry sources suggest production could begin as early as 2027 for iPhone 19 chips, though this timeline depends on Intel's 18A process node readiness.
The financial terms of the deal have not been revealed, but analysts expect it to be worth billions annually given Apple's massive chip volumes. Any iPhone-scale manufacturing assignment would require substantial capacity from Intel alongside its own processor production.
Market impact and next steps
Intel shares gained nearly 14% following the news, adding approximately $20 billion to the company's market capitalisation. TSMC shares remained stable in Asian trading, suggesting investors view this as diversification rather than replacement.
Frequently Asked Questions
Who will manufacture Apple's chips now?
According to sources, Intel will manufacture some chips for Apple devices alongside TSMC, ending Apple's exclusive reliance on Taiwan Semiconductor Manufacturing Company.
What chips will Intel make for Apple?
The deal could involve Apple A21 chips for the iPhone 19 lineup expected in 2027 or M-series chiplet silicon for Mac computers, though specific details remain unconfirmed.
When will Intel start making Apple chips?
No official timeline has been announced, but industry sources suggest production could begin as early as 2027 depending on Intel's manufacturing readiness.
Why is Apple switching from TSMC to Intel?
Apple isn't completely switching but diversifying suppliers to reduce supply chain risk, gain negotiating leverage, and ensure domestic manufacturing capabilities through Intel's US facilities.
How much did Intel shares rise on this news?
Intel shares closed up 13.93% following reports of the Apple manufacturing agreement, adding approximately $20 billion to Intel's market value.
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