Apple has preliminarily agreed to resume chip manufacturing with Intel after six years—driven by supply chain constraints at TSMC, its sole advanced-node foundry partner. Intel’s 18A-P node, targeted for 2027 volume ramp, is expected to produce 15–20 million units annually of Apple’s lowest-end M-series chips. The deal follows over 12 months of negotiations, U.S. government engagement—including meetings between Tim Cook and President Trump—and Intel’s 200%+ stock gain in 2026. Analysts cite Intel as the only viable second source capable of scaling capacity rapidly.
According to timesofindia.indiatimes.com, Apple has reached a preliminary agreement with Intel to manufacture some of its chips—a move ending a six-year estrangement that began when Apple transitioned from Intel processors to its own Apple Silicon in 2020.
Deal Mechanics and Timeline
The Wall Street Journal reported that Apple and Intel have conducted intensive negotiations for over 12 months, with a formal agreement taking shape in recent months as of May 2026. Neither company has issued public statements confirming the deal. Intel’s shares surged nearly 15% on the news, while Apple’s stock rose roughly 1.7%. Intel’s shares have now climbed more than 200% year-to-date in 2026—marking one of the strongest equity performances among U.S. semiconductor firms this year.
Supply Chain Drivers
At the core of the decision is a critical supply constraint: TSMC, Apple’s sole foundry partner for all advanced-node chips, is operating at full capacity. As Apple’s second-largest customer, it faces diminished flexibility amid surging AI chip demand from Nvidia and others. On its April 2026 earnings call, CEO Tim Cook explicitly acknowledged Apple has “less flexibility in the supply chain than we normally would,” with shortages constraining both Mac and iPhone production.
Bloomberg confirmed Apple also held exploratory talks with Samsung—including executive visits to Samsung’s under-construction chip fab in Taylor, Texas. However, analyst Ben Bajarin of Creative Strategies stated plainly:
“Intel is the only place that can scale up capacity as a viable second source.” — Ben Bajarin, Principal Analyst, Creative Strategies
Process Node Target and Volume Projections
Apple is not targeting Intel’s current 18A node—the company’s first-generation process comparable to TSMC’s 2nm—but rather the enhanced 18A-P node, which Intel expects to ramp into high-volume manufacturing as early as 2027. According to supply chain analyst Ming-Chi Kuo, Intel is projected to begin shipping Apple’s lowest-end M-series processor—used in the MacBook Air and iPad Pro—on the 18A-P node in the second or third quarter of 2027, pending completion of PDK (Process Design Kit) milestones. Annual shipment volumes for that chip are forecast at 15–20 million units.
U.S. Government Engagement
The Wall Street Journal noted active U.S. government involvement in facilitating the arrangement. Commerce Secretary Howard Lutnick met repeatedly with Apple leadership, including Tim Cook, to advance the partnership. The report further states that President Trump personally made the case for Intel during a White House meeting with Cook—underscoring the strategic importance placed on domestic semiconductor manufacturing resilience.
Industry Context and Practitioner Implications
This development reflects broader industry pressures: TSMC’s advanced-node capacity remains oversubscribed, with lead times for 3nm and 2nm wafers extending beyond 20 weeks for non-priority customers, per TrendForce data published in Q1 2026. Meanwhile, Samsung Foundry reported $2.1 billion in 2025 foundry revenue, still less than 15% of TSMC’s $14.8 billion in the same period. For supply chain professionals, dual-sourcing from Intel represents more than redundancy—it enables Apple to secure allocation priority for specific nodes while diversifying geopolitical risk across U.S.-based and Taiwan-based manufacturing. With Intel’s Chandler, Arizona fab designated as a Tier-1 U.S. Department of Defense-certified facility, the deal also aligns with the CHIPS and Science Act’s incentive structure, which provides up to $3.5 billion in direct grants for leading-edge domestic fabrication.
Source: timesofindia.indiatimes.com
Compiled from international media by the SCI.AI editorial team.
