Apple is preparing to shift part of its chip production back to Intel, marking a significant pivot in its supply chain strategy.
Quick Summary – TLDR:
- Apple is expected to partner with Intel to manufacture entry-level M-series chips starting in mid-2027
- This move aims to diversify production currently dominated by TSMC and mitigate geopolitical risks
- Chips will use Intel’s 18A process, a major technological leap in chip manufacturing
- The partnership supports US manufacturing goals and offers Apple leverage in future supply negotiations
What Happened?
Apple is reportedly set to reintroduce Intel into its processor manufacturing lineup by 2027. According to respected analyst Ming-Chi Kuo, Intel will produce Apple’s entry-level M-series chips using its advanced 18A process node, designed to rival sub-2nm technologies. This marks a return to collaboration years after Apple’s complete transition to its own Apple Silicon, manufactured exclusively by TSMC.
Intel expected to begin shipping Apple’s lowest-end M processor as early as 2027
— 郭明錤 (Ming-Chi Kuo) (@mingchikuo) November 28, 2025
There have long been market rumors that Intel could become an advanced-node foundry supplier to Apple, but visibility around this had remained low. My latest industry surveys, however, indicate that…
Apple Taps Intel to Reinforce Supply Chain
After parting ways with Intel’s x86 processors in 2020, Apple embraced TSMC as its sole chip fabricator. But the landscape is shifting. By 2027, Apple plans to diversify manufacturing of its standard M-series chips across both Intel and TSMC. Intel will handle lower-end chips, such as those used in the MacBook Air, iPad Air, and base iPad Pro models, while TSMC continues producing Pro, Max, and Ultra variants as well as A-series chips for iPhones.
This partnership reflects Apple’s evolving supply strategy:
- Intel will not design the chips but will act strictly as a manufacturing partner.
- Apple retains full control over the design of its ARM-based M-series chips.
- The chips are expected to be branded under the M6 or M7 lineup, manufactured starting in Q2 or Q3 of 2027.
- Initial volumes could reach 15 to 20 million units, primarily for entry-level devices.
Intel’s 18A Process: The Technical Edge
Intel’s 18A process, revealed during its Direct Connect 2025 event, brings cutting-edge innovations to semiconductor fabrication. The process introduces Foveros Direct 3D hybrid bonding, enabling vertical chip stacking for improved density and performance. The less-than-5-micron bonding pitch allows greater efficiency within the same chip footprint, aligning with Apple’s emphasis on performance-per-watt and battery life.
Notably, Apple has already acquired Intel’s 18AP PDK 0.9.1GA under a strict NDA, indicating serious technical due diligence and commitment. The company is now awaiting PDK versions 1.0 and 1.1, expected by early 2026, before proceeding to mass production in 2027.
Strategic and Geopolitical Motives
Apple’s decision is not just about technology, it’s about managing global risks and policy pressures. With the US government encouraging domestic chip production via the CHIPS Act, Intel’s US-based foundry operations offer Apple a powerful narrative and practical advantage.
Analyst Kuo notes this move could satisfy the “Made in America” agenda and reduce reliance on TSMC amid US-China trade tensions. Although the deal’s volume will be small compared to TSMC’s output, it serves an important role in Apple’s larger geopolitical strategy.
SQMagazine Takeaway
In my experience following Apple’s hardware evolution, this kind of calculated partnership is exactly how Apple stays ahead. They’re not ditching TSMC, they’re adding a second strong leg to stand on. By pulling Intel back in for manufacturing, not design, Apple gets the production capacity and geographic diversity it needs without sacrificing control or quality.
It’s a strategic play, not a sentimental one. And if Intel can meet Apple’s demanding standards, this deal could mark the beginning of a new era in domestic chip manufacturing. I’ll be watching closely to see how this affects pricing, product availability, and future chip innovation.
