Intel is in discussions with Apple about manufacturing chips for the iPhone — a development that, if it materialises, would represent one of the most significant shifts in the semiconductor industry’s supply chain in years.
The discussions, reported by multiple technology industry sources, come as Intel works to establish its foundry business as a credible competitor to TSMC and Samsung. Apple’s business would be, for Intel Foundry, the kind of anchor customer win that changes everything about how the industry perceives you.
Apple’s Current Manufacturing Dependencies
Apple’s A-series and M-series chips — the custom silicon that is now central to its product differentiation across iPhone, Mac, and iPad — are currently manufactured almost exclusively by TSMC in Taiwan. The concentration of that dependency has been a concern for Apple, for the US government, and for anyone thinking seriously about supply chain resilience in a world where Taiwan’s geopolitical situation is uncertain.
Apple has been part of the consortium of companies backing TSMC’s Arizona facility expansion, which will reduce but not eliminate the Taiwan concentration. A meaningful Intel Foundry relationship would be a further diversification step.
Intel’s Foundry Challenge
Intel’s foundry transformation — moving from an integrated manufacturer making its own chips to a business that also makes chips for external customers — is still a work in progress. Its 18A process node is the technology that would need to be competitive with TSMC’s equivalent to attract major clients.
Early signals on 18A have been cautiously positive. Broadcom and several defense contractors have placed orders or agreements. Apple would be a different order of magnitude — in prestige, in volume, and in the technical demands Apple places on its chip manufacturers.
What This Would Mean for Both Companies
For Intel: surviving as a foundry business at scale requires tier-one customers. There are very few companies on earth that could anchor a foundry’s premium business the way Apple could.
For Apple: a second qualified source for advanced node chips gives supply chain leverage and resilience. It also fits Apple’s historical approach to its supply chain: rarely relying entirely on a single vendor for anything critical.
Discussions, of course, are not contracts. The gap between “in talks” and “in production” in semiconductor foundry relationships is significant. But the conversations are happening, which is itself news.
