Podcast Episode
Apple Reportedly in Talks with Intel to Manufacture iPhone Chips Starting 2028
January 23, 2026
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Apple is reportedly in discussions to revive its chipmaking partnership with Intel, with the foundry expected to begin supplying chips for select iPhone models starting in 2028. The arrangement would help the tech giant diversify its supply chain as it faces rising competition for semiconductor manufacturing capacity amid the artificial intelligence boom.
Analyst Jeff Pu reiterated his forecast that Intel could begin manufacturing chips for non-Pro iPhone models using its upcoming 14A process technology. Apple would retain full control over chip design while Intel handles fabrication, marking a significant departure from the previous Intel Mac era when Apple used Intel-designed x86 processors.
The partnership may extend beyond iPhones. In November 2025, analyst Ming-Chi Kuo predicted Intel would begin shipping Apple's lowest-end M-series chips for select Mac and iPad models by mid-2027, utilizing Intel's 18A process. Pu's latest note aligns with Kuo's earlier timeline while expanding the scope to include iPhone processors.
Production volumes for the Mac and iPad chips are anticipated to reach 15 to 20 million units annually, a fraction of Apple's overall silicon requirements exceeding 200 million units. The partnership was confirmed at CES 2026 in mid-January, marking a landmark foundry agreement between the two tech giants.
TSMC CEO CC Wei visited Apple's headquarters in August 2025 with news that the iPhone maker would face significant price increases and no longer enjoy guaranteed priority access to manufacturing capacity. AI accelerators consume substantially more wafer area per unit than smartphone chips, meaning fewer AI customers can absorb a disproportionate share of advanced manufacturing output.
Apple's annual spending with TSMC has grown from 2 billion dollars in 2014 to 24 billion dollars in 2025, but the foundry's priorities have shifted alongside the AI boom. For the first time in a decade, Apple is having to compete for its place in line across TSMC's fabrication plants rather than receiving automatic priority.
The partnership allows Apple to test Intel's manufacturing capabilities with lower-volume, non-flagship products while maintaining its primary relationship with TSMC for high-end chips. Intel's 18A process has reportedly achieved yields exceeding 60%, a milestone that positions the chipmaker as a credible alternative to TSMC.
By starting with entry-level M-series chips and non-Pro iPhone models, Apple can evaluate Intel's fabrication quality and reliability before potentially committing larger volumes. The arrangement gives Apple leverage in negotiations with TSMC while providing Intel with a high-profile customer for its foundry business.
The deal could prove transformative for Intel's struggling foundry business, providing validation of its advanced manufacturing processes and potentially attracting additional customers. For Apple, the partnership represents insurance against supply chain disruptions and competitive pressures in an increasingly AI-driven chip market.
As the AI boom continues to consume manufacturing capacity at unprecedented rates, tech giants are being forced to adapt their supply chain strategies. Apple's move to diversify beyond TSMC may become a template for other companies seeking to secure reliable access to cutting-edge semiconductor manufacturing in an era of intensifying competition.
Intel's Fabrication Role
Under the potential arrangement, Intel would manufacture portions of Apple's A21 or A22 system-on-chips for devices such as the iPhone 20 or a budget-oriented e model. Apple-designed chips would continue using ARM-based architecture, meaning Intel's involvement would be strictly limited to fabrication.The partnership may extend beyond iPhones. In November 2025, analyst Ming-Chi Kuo predicted Intel would begin shipping Apple's lowest-end M-series chips for select Mac and iPad models by mid-2027, utilizing Intel's 18A process. Pu's latest note aligns with Kuo's earlier timeline while expanding the scope to include iPhone processors.
Production volumes for the Mac and iPad chips are anticipated to reach 15 to 20 million units annually, a fraction of Apple's overall silicon requirements exceeding 200 million units. The partnership was confirmed at CES 2026 in mid-January, marking a landmark foundry agreement between the two tech giants.
TSMC Competition Intensifies
The potential Intel partnership comes as Apple faces unprecedented pressure at Taiwan Semiconductor Manufacturing Company. Nvidia CEO Jensen Huang recently confirmed that his company has overtaken Apple as TSMC's largest customer, driven by surging demand for AI accelerators.TSMC CEO CC Wei visited Apple's headquarters in August 2025 with news that the iPhone maker would face significant price increases and no longer enjoy guaranteed priority access to manufacturing capacity. AI accelerators consume substantially more wafer area per unit than smartphone chips, meaning fewer AI customers can absorb a disproportionate share of advanced manufacturing output.
Apple's annual spending with TSMC has grown from 2 billion dollars in 2014 to 24 billion dollars in 2025, but the foundry's priorities have shifted alongside the AI boom. For the first time in a decade, Apple is having to compete for its place in line across TSMC's fabrication plants rather than receiving automatic priority.
Strategic Diversification
Intel's U.S.-based fabrication facilities, bolstered by government incentives under the CHIPS Act, offer Apple a geopolitical hedge against risks tied to Taiwan-based production while supporting supply chain diversification. The move represents a strategic effort by Apple to reduce dependency on a single manufacturer, particularly one located in a geopolitically sensitive region.The partnership allows Apple to test Intel's manufacturing capabilities with lower-volume, non-flagship products while maintaining its primary relationship with TSMC for high-end chips. Intel's 18A process has reportedly achieved yields exceeding 60%, a milestone that positions the chipmaker as a credible alternative to TSMC.
By starting with entry-level M-series chips and non-Pro iPhone models, Apple can evaluate Intel's fabrication quality and reliability before potentially committing larger volumes. The arrangement gives Apple leverage in negotiations with TSMC while providing Intel with a high-profile customer for its foundry business.
Industry Implications
The Apple-Intel partnership signals a broader shift in the semiconductor industry, where AI demand is reshaping traditional customer relationships and manufacturing priorities. High-performance computing for AI applications now takes precedence over smartphone chips at major foundries.The deal could prove transformative for Intel's struggling foundry business, providing validation of its advanced manufacturing processes and potentially attracting additional customers. For Apple, the partnership represents insurance against supply chain disruptions and competitive pressures in an increasingly AI-driven chip market.
As the AI boom continues to consume manufacturing capacity at unprecedented rates, tech giants are being forced to adapt their supply chain strategies. Apple's move to diversify beyond TSMC may become a template for other companies seeking to secure reliable access to cutting-edge semiconductor manufacturing in an era of intensifying competition.
Published January 23, 2026 at 7:19pm