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Apple and Intel Reportedly Reach Preliminary Chip Manufacturing Deal

By Any May 14, 2026
Apple and Intel have reportedly reached a preliminary agreement for Intel to manufacture processors for Apple devices. The deal, a significant step for Intel's contract foundry business, could see Intel begin producing Apple's M-series chips as early as 2027, diversifying Apple's supply chain away from TSMC.
Apple and Intel Reportedly Reach Preliminary Chip Manufacturing Deal

Apple and Intel Reportedly Reach Preliminary Chip Manufacturing Deal Apple walked away from Intel’s chips years ago. Now, in a twist that says everything about geopolitics, government muscle, and tech ambition, the two giants are being pushed back together on the factory floor.

2020–2023: The breakup that set the stage

Apple’s divorce from Intel began in earnest when Macs started shipping with Apple Silicon, powered by custom M‑series chips built by TSMC in Taiwan. Performance wins, battery life, and tighter integration made the split look final. Intel, stuck in manufacturing delays and late to Extreme Ultraviolet (EUV) lithography, ceded the leading edge to TSMC and watched as Apple’s move validated the “design your own silicon” playbook.

While Apple surged, Intel stumbled. Its manufacturing leadership “slipped behind Taiwan Semiconductor Manufacturing Co. (TSMC) after delays in adopting Extreme Ultraviolet lithography,” which in turn “underpinned Apple’s shift to custom silicon.” For a while, it looked like Intel would be forever on the outside of Apple’s hardware plans.

2024–2025: Washington decides Intel is too important to fail offshore

Behind the scenes, the US government was rewriting the script. Washington’s fear: an American tech stack built on chips almost entirely fabricated in Taiwan, squarely in the crosshairs of geopolitical risk.

In 2025, the US government did something extraordinary: it converted a US$9 billion federal grant into equity in Intel, making the government Intel’s largest shareholder with roughly a 10% stake. This wasn’t industrial policy at the margins; it was a direct bet on one company as the national champion for advanced chips.

An administration official put the strategy plainly: the goal was to bolster Intel “because it is a major US chip producer,” adding, “In general, we want to and have been helping Intel. We have been trying to drum up business for Intel.”

That “drumming up business” wasn’t theoretical. US Commerce Secretary Howard Lutnick reportedly met Apple CEO Tim Cook multiple times to encourage a deal with Intel, while also lobbying SpaceX’s Elon Musk and NVIDIA’s Jensen Huang to deepen ties with the chipmaker. Apple’s foundry decisions were no longer just about price and performance; they were now a lever of US industrial policy.

Late 2025: Intel’s new leadership and Apple’s quiet inquiries

Intel, meanwhile, was trying to reinvent itself. Lip‑Bu Tan took over as CEO in March 2025, a leadership shift that coincided with the federal stake and an aggressive new push to become a serious contract foundry player, not just a chip designer.

By September 2025, Intel wasn’t just chasing government subsidies — it was actively courting Apple. Bloomberg reported that Intel had “asked Apple about a potential investment and how to work more together,” framing Apple not only as a prospective customer but also as a strategic partner in its comeback bid.

At the same time, Apple was quietly opening the door. The company held “exploratory discussions” with Intel and Samsung about having them fabricate its processor chips in the US — a sharp contrast to its existing reliance on TSMC in Taiwan. Apple didn’t comment publicly, but the direction was clear: diversify the supply chain, bring more production onshore, and hedge against geopolitical risk.

Late 2025: The first whispers of an Intel–Apple foundry tie-up

By late 2025, supply chain analyst Ming‑Chi Kuo added fuel to the speculation, saying Intel was “expected” to start shipping “Apple’s lowest-end M processor” as soon as 2027. If true, that timeline suggested Apple was willing to entrust at least part of its marquee silicon roadmap to a rejuvenated Intel foundry.

For Intel, even the “lowest-end” M chip would be a validation of its process technology and a signal to other fabless giants that it was back in the game. For Apple, it was a low‑risk way to test Intel’s capabilities without putting its flagship products on the line.

May 2026: The preliminary deal lands

After roughly a year of talks, The Wall Street Journal reported — and multiple outlets echoed — that Intel and Apple had reached a preliminary agreement for Intel to manufacture processors for Apple devices. The deal reunites the companies years after Macs moved away from Intel chips and marks a pivotal milestone in Intel’s foundry ambitions.

Reporting described it bluntly: “Intel and Apple agree a preliminary chipmaking deal, boosting US manufacturing and diversifying Apple’s supply chain.” The pact would give Intel “a steady stream of demand from one of the world’s largest consumer electronics companies,” cementing its shift into a true contract foundry.

The exact product mix is still murky. As one account put it, it’s “still unclear” which Apple products will use Intel‑made chips, and both companies declined to comment publicly. But the outlines are already visible: Intel is expected to fab at least some Apple M‑series processors in the US starting around 2027, likely beginning with lower‑tier models.

Market reaction: Wall Street loves a comeback story

If this is Intel’s redemption arc, investors are buying tickets. The same WSJ report that detailed the Apple pact landed alongside strong first‑quarter results, and together they lit up Intel’s stock. “Intel shares rose about 14%, then added a further 6% in pre-market trading to reach US$130.13.”

For shareholders, the logic is simple: if Intel can meet Apple’s brutal performance and efficiency requirements for iPhone and Mac chips, it will prove its process technology is once again at the leading edge — and open the door to more high‑margin foundry business.

Government view: industrial policy, made in America

From Washington’s perspective, the preliminary deal is vindication. The administration wanted more high‑end chip production on US soil and was willing to take an equity stake, rewrite incentives, and personally lobby CEOs to make it happen. Now, the US’ most valuable company is preparing to move critical chip manufacturing away from an island 100 miles off China’s coast and into American fabs.

Officials have cast this in almost patriotic terms, saying the goal is to “bring more chip production to the US and strengthen domestic manufacturing.” Intel’s pact with Apple is Exhibit A.

Apple’s angle: security, leverage, and optionality

Apple, famously allergic to single points of failure, has watched TSMC become both a crown jewel and a risk. The company already pushes TSMC to build fabs in the US and has sprinkled lower‑end production across multiple nodes and partners, but its cutting‑edge processors remain heavily TSMC‑centric.

The new deal gives Apple something it prizes even more than raw performance: options. Having Intel in the mix “diversifying Apple’s supply chain away from reliance on TSMC” is not just a line in a report; it’s strategic insurance. If Intel can hold its own on advanced nodes, Apple suddenly has leverage in pricing, capacity allocation, and geopolitical risk management.

Intel’s perspective: from laggard to linchpin

For Intel, this is existential. Years of manufacturing missteps let TSMC and Samsung sprint ahead. Now, winning Apple’s business “compels Intel to remain at the leading edge to meet stringent performance and efficiency targets for iPhone and Mac chips.”

The Apple pact is framed internally and externally as a “landmark foundry pact” and a “milestone” for its contract foundry ambitions. It isn’t just about volume; it’s a stamp of technological legitimacy. If you can fab for Apple, you can pitch anyone.

That pitch is already resonating beyond Cupertino. As Intel courts other giants, it’s leaning on both its upgraded fabs and its growing list of high‑profile visitors. Elon Musk, for one, did his part in the public narrative, posting: “It was an honor to be shown the awesome @Intel fab in Oregon this week. Looking forward to a great partnership with @SpaceX & @Tesla!”

The competitive fallout: TSMC, Samsung, and the geopolitics of wafers

None of this happens in a vacuum. TSMC, whose EUV prowess “underpinned Apple’s shift to custom silicon,” now faces the prospect of a key customer giving serious volume to a resurgent US rival. Samsung, which has also been in talks with Apple about US‑based chipmaking, remains in the wings as both competitor and potential backup.

If Intel executes, the global balance of manufacturing power could tilt. TSMC still dominates the leading edge, but a credible Intel foundry with Apple on its client list, backed by the US government, is a different level of threat.

2027 and beyond: a multi‑foundry Apple, a re‑weaponized Intel

Looking ahead to 2027, the expected shipping window for “Apple’s lowest-end M processor” out of Intel fabs, the stakes are clear.

For Apple, success means a multi‑foundry model where no single geography or vendor can hold its products hostage. For Intel, success means transforming from a humbled incumbent into a linchpin of Western semiconductor strategy. For Washington, it’s proof that industrial policy can bend even Apple’s famously insular supply chain.

The breakup between Apple and Intel was about performance and innovation. The reunion is about power — technological, financial, and geopolitical — and who controls the world’s most important manufacturing base.

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