---
title: "Apple and Intel Reach Preliminary Chip Manufacturing Deal"
date: 2026-05-08
author: "Sofia Ramirez"
featured_image: "https://sqmagazine.co.uk/wp-content/uploads/2026/05/apple-and-intel-reach-chip-manufacturing-deal.jpg"
categories:
  - name: "Technology"
    url: "/technology.md"
tags:
  - name: "News"
    url: "/tag/news.md"
---

# Apple and Intel Reach Preliminary Chip Manufacturing Deal

Apple may soon rely on Intel to manufacture chips for future iPhones, Macs, and other devices as pressure grows on TSMC from the booming AI industry.

## Quick Summary

- Apple and Intel have reportedly reached a preliminary agreement for Intel to manufacture some Apple chips.
- The move could help Apple reduce its dependence on TSMC, which is struggling with growing AI chip demand.
- Reports say discussions between Apple and Intel have been ongoing for more than a year.
- The deal could become one of Intel’s biggest manufacturing wins in recent years.

## What Happened?

Apple and Intel have reportedly finalized a preliminary agreement that could see **Intel manufacture chips used in some Apple devices**. According to reports citing people familiar with the matter, the discussions between the two companies have been taking place for over a year before recently moving toward a formal agreement.

The exact products involved remain unclear for now, but the talks highlight Apple’s growing concerns around chip supply limitations as demand for advanced semiconductor production continues to explode across the AI industry.

> NEW: Apple and Intel have reportedly reached a preliminary agreement for Intel to manufacture chips used in future Apple devices, according to the Wall Street Journal [pic.twitter.com/714QkbkSJx](https://t.co/714QkbkSJx)
> 
> — CoinDesk (@CoinDesk) [May 8, 2026](https://twitter.com/CoinDesk/status/2052810123207160171?ref_src=twsrc%5Etfw)

 ## Apple Looks Beyond TSMC

For years, [Apple](https://sqmagazine.co.uk/apple-statistics/) has relied heavily on **TSMC** to manufacture its custom silicon chips, including the powerful A series processors used in iPhones and the M-series chips powering Macs and iPads. That partnership helped Apple build one of the strongest hardware ecosystems in the tech industry.

However, the rise of artificial intelligence has dramatically changed the semiconductor market. Companies like **Nvidia** and **AMD** are consuming massive amounts of advanced manufacturing capacity at TSMC for [AI accelerators and data center chips](https://sqmagazine.co.uk/ai-chip-statistics/).

That surge in demand is now creating supply challenges even for Apple.

During Apple’s recent earnings call, CEO **Tim Cook** acknowledged that chip supply constraints impacted product availability. Reports specifically pointed to shortages involving the upcoming A19 and A19 Pro chips expected for [future iPhone models](https://sqmagazine.co.uk/iphone-statistics/).

By exploring Intel as an additional manufacturing partner, Apple could gain more flexibility and reduce the risk of future supply shortages.

## A Surprising Reunion Between Apple and Intel

The idea of Apple working closely with Intel again may surprise longtime tech followers.

Apple previously used Intel processors in Mac computers from **2005 until 2020** before shifting entirely to its own Apple Silicon chips. That transition happened after years of frustration over Intel’s delayed chip roadmaps, thermal issues, and slowing innovation.

Apple’s launch of the **M1 chip** became a massive success and was widely viewed as proof that moving away from Intel was the right decision.

Now, the relationship appears to be entering a new chapter.

Reports suggest Apple executives have visited Intel facilities and explored Intel’s upcoming 18A and 14A manufacturing technologies. Intel’s newer leadership under CEO **Lip Bu Tan** has focused heavily on rebuilding confidence in the company’s foundry business.

While Intel may not immediately manufacture [Apple’s most advanced flagship chips](https://sqmagazine.co.uk/apple-intel-m-series-chip-deal-2027/), analysts believe the company could potentially handle lower end or secondary chip production in the future.

## Intel Gets a Major Opportunity

For Intel, this potential partnership would represent a major milestone in its effort to compete directly with TSMC in the contract chip manufacturing business.

Intel has spent years trying to revive its foundry operations after losing ground to overseas competitors. Securing Apple as a customer would instantly boost Intel’s credibility in the semiconductor industry.

The news also had an immediate impact on the stock market. **Intel shares surged sharply** after reports of the agreement surfaced, while Samsung shares also moved higher as investors reacted to the possibility of Apple diversifying its manufacturing partners.

The US government has reportedly played a role in encouraging stronger domestic semiconductor manufacturing partnerships, especially as global supply chain concerns continue to grow.

## Why This Matters for the Industry?

Apple shipping more than **200 million iPhones annually** means even a small manufacturing partnership could become a huge business opportunity for Intel.

The development also reflects a much larger shift happening across the semiconductor industry. AI is no longer only changing software and [cloud computing](https://sqmagazine.co.uk/cloud-computing-statistics/). It is reshaping the entire global chip supply chain.

Companies are now competing aggressively for advanced production capacity, and even Apple can no longer rely on guaranteed access to the world’s top chip manufacturing lines.

For consumers, this could eventually help Apple avoid delays and improve device availability during future product launches.

## SQ Magazine Takeaway

I think this story shows just how powerful the AI boom has become. A few years ago, nobody would have imagined Apple turning back to Intel after the success of Apple Silicon. But when AI companies start consuming nearly every advanced chip production slot available, even Apple has to rethink its strategy.

This could become one of the biggest comeback moments for Intel if the partnership moves forward. At the same time, it also proves that TSMC’s dominance has become so strong that the entire tech industry now depends on a single company for cutting edge chip manufacturing.