Two of the most iconic names in tech are back in business together — but this time on very different terms. Apple and Intel have reached a preliminary agreement for Intel to manufacture some of the chips that power Apple devices, according to people familiar with the matter.
The deal, first reported by The Wall Street Journal, marks one of the most significant shifts in the global semiconductor supply chain in years. Intel shares soared nearly 14% on the news. Apple shares added 2%. Both companies declined to comment.
What We Know So Far
Intensive talks between the two companies have been ongoing for more than a year, with a formal deal hammered out in recent months. The specifics of which Apple products Intel would manufacture chips for remain unconfirmed, but early indications point squarely at the Mac and iPad lineup.
Prior rumours on Intel’s Apple talks have suggested Intel could make some of the lower-end processors used in Apple devices, including the lowest-end M-series chips used in select iPad and Mac models. Analyst Jeff Pu followed up in December saying the potential partnership could extend to producing iPhone chips too.
The most likely scenario, per industry analysts, is a tiered approach — Intel handles the base M and A-series chips while TSMC retains the cutting-edge Pro variants where process node leadership matters most.
Why Apple Is Doing This
Apple currently relies solely on Taiwan Semiconductor Manufacturing Company to make all the most advanced chips for its devices. But TSMC’s wafer capacity can only go so far, amid soaring demand for AI chips that has sent every major tech company into a semiconductor frenzy.
The move likely has to do with supply constraints that outgoing Apple CEO Tim Cook referenced in the latest quarterly earnings call. With over 200 million iPhones shipping annually alongside millions of iPads and Macs, Apple’s dependence on a single manufacturer in Taiwan is both a logistical and geopolitical vulnerability — one that has become harder to ignore as US-China tensions around Taiwan continue to simmer.
For Apple, the agreement provides greater supply chain resilience amid geopolitical tensions and capacity crunches.
What It Means for Intel
If the deal comes to fruition, it would be the most notable vote of confidence yet for Intel’s once-struggling chip foundry business. Intel shares are up more than 200% this year.
This is Intel’s foundry division — Intel Foundry Services — not Intel’s own chip design team. Intel would make chips based on Apple’s own chip designs, much like TSMC currently does. Apple remains firmly in control of the silicon architecture; Intel is simply the factory.
For America, this represents progress toward bringing advanced chip manufacturing back home, aligning with national security and economic goals.
The India Angle
For Indian consumers and developers, the implications are indirect but real. Apple’s supply chain diversification reduces the risk of device shortages and price spikes driven by TSMC capacity constraints — the same pressures partly responsible for the Mac Mini M4 price hike and broader smartphone price increases seen across brands in India through 2025–26.
A more resilient Apple supply chain eventually means more stable pricing and better availability in markets like India.
The Bottom Line
Chip analyst Ben Bajarin of Creative Strategies put it plainly: “I 100% believe this is going to happen. I don’t know when.” The Apple-Intel chip deal is not just a business story — it is a geopolitical and industrial realignment that could reshape how the world’s most valuable consumer tech products are manufactured for the next decade.
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