What’s Changing
Picture this: Just five years after Apple dramatically cut ties with Intel, ditching their x86 processors for the sleek, power-sipping M-series chips that revolutionized Macs, the two giants might be teaming up again. Not for design this time, but for manufacturing. According to fresh analyst buzz, Apple could hand over production of entry-level M-series and even some A-series chips to Intel as early as 2027, shaking up the semiconductor world in ways that feel both nostalgic and forward-thinking.
It all kicked off last week when Ming-Chi Kuo – the Apple whisperer who’s nailed predictions from iPhone launches to Vision Pro specs – dropped a bombshell on social media. Intel, he said, is gearing up to fabricate Apple’s lowest-end M-series processors using its cutting-edge 18A-P process node. We’re talking about the base chips that power everyday heroes like the MacBook Air and iPad Pro, not the beastly Pro or Max variants. Apple has already signed an NDA with Intel and is tinkering with an early version of the process design kit (PDK 0.9.1), with full versions expected in Q1 2026. If yields and performance hold up – and early simulations look promising – volume production could ramp up by mid-2027, shipping 15-20 million units annually.
But wait, it gets juicier. Analyst Jeff Pu piled on with his own report, suggesting Apple might expand the deal to “non-pro smartphone SoCs” – that’s code for the standard A-series chips in entry-level iPhones – starting in 2028. Imagine: The chips inside your budget iPhone 17e (or whatever they call it) could be stamped “Made by Intel” on the back end, using the even-more-advanced 14A node. TSMC, Apple’s longtime manufacturing soulmate, would stick to the high-end stuff – Pro, Max, Ultra – to keep things humming without a hitch.
Why now?
It’s a classic case of hedging bets in a world that’s anything but predictable. Apple’s been all-in on TSMC since 2020, when the M1 chip made Intel’s reign feel like ancient history. But with geopolitical tensions simmering around Taiwan – think U.S.-China trade spats and calls for “Made in USA” tech under the incoming Trump administration – diversifying suppliers isn’t just smart; it’s survival. A single earthquake or tariff hike at TSMC could cripple iPhone production, and no one wants a repeat of the 2021 chip shortage that turned holiday shopping into a bloodbath. By tapping Intel’s U.S.-heavy fabs (with more coming online via the CHIPS Act), Apple gets resilience without sacrificing its ARM-based designs – these are still pure Apple Silicon, just baked in a different oven.
Why Apple (and Intel) Might Do This
Supply-Chain Diversification & Stability
- Until now, Apple has almost exclusively relied on TSMC for manufacturing its Apple-designed chips (M-series for Macs/iPads, A-series for iPhones).
- Adding Intel as a second source – especially for entry-level chips – gives Apple flexibility and supply-chain resilience. Less risk of shortages if one foundry faces issues.
“Made in USA” Appeal & Geopolitical Climate
- Intel has manufacturing facilities in the U.S., which could help Apple align with policy pushes for more domestic semiconductor production – a notable factor amid growing geopolitical pressure on global chip supply chains.
- For Intel, winning Apple as a foundry client would be a huge validation, boosting its foundry business and helping it compete more directly with TSMC and others.
Lower-end vs High-end Chips Strategy
- The plan reportedly doesn’t affect Apple’s high-end M-series chips (Pro, Max, Ultra) – those would continue being made by TSMC, keeping performance leadership intact.
- By outsourcing only “base-level” chips, Apple likely keeps overall quality and performance high while optimizing cost and supply resilience.
For Intel, this is manna from Silicon Valley heaven. The company’s been in the foundry game since 2021, but it’s bleeding cash chasing TSMC’s shadow. Landing Apple – a “tier-one” client with massive volumes – could finally flip the script, helping Intel break even by 2027 and validate its 18A tech against the best. It’s like the underdog quarterback getting a shot at the Super Bowl: high stakes, but if they nail the handoff, everyone wins. Wall Street’s already perking up – Intel shares ticked higher on the rumors – and it could pave the way for more big fish like AMD or Qualcomm to test Intel’s waters.
As 2026 unfolds, keep an eye on those PDK updates and fab announcements. The chip wars just got a lot more interesting.
