New Delhi: The long and turbulent history between Apple and Intel might be turning a new page. Apple and Intel, five years after Apple substituted the x86 chips with its own M-series, are said to be gearing up to collaborate with each other, but in a much different manner. Supply chain analyst Ming-Chi Kuo believes that Intel may start producing entry-level processors in the Apple M-series by 2027, with Apple designing all aspects of the chips.
Kuo says that the 18AP process that is advanced by Intel can be manufactured on behalf of Apple as early as the second or third quarter of 2027. Intel-created chips would probably serve future MacBook Air models, iPad Air models and iPad Pro models, and it is estimated that the volumes might be 15-20 million. TSMC would also remain the provider of the majority of Apple’s more premium silicon, such as iPhones.
Intel returns as a manufacturer, not a designer
This partnership would not entail Intel coming up with processors, as was previously the case. Power in Apple will be in control of its ARM-based M-series architecture. The role of Intel will be restricted to fabrication, where the chipmaker will be a secondary foundry with TSMC. The transition will provide Apple with more flexibility without outsourcing its innovative designs.
A boost for ‘Made in USA’ goals
Kuo argues that the acquisition may also be used to allow Apple to fall in line with the U.S. government push towards local semiconductor manufacturing. These national manufacturing ambitions revolve around Intel, which is currently partially owned by the government via a 10 per cent stake which it bought in August. This is not the first time that Bloomberg reported on Intel seeking investment into Apple as part of its overall turnaround strategy, with Intel CEO Tim Cook stating that he would love to see Intel revive.
Reducing reliance on TSMC
Though TSMC is still the leading manufacturing partner of Apple, the reduction of supplier diversification is effective in geopolitical and supply chain risk reduction. Early design specifications and an NDA with Intel have already been signed by Apple. Key development milestones seem to be on schedule, with the full design kit by Intel available at the beginning of 2026. In the case of Intel, the acquisition of Apple would be a significant success in its foundry recovery. In the case of Apple, it is a strategic play-off between risk, politics and innovation and keeping one’s options broadly open.