Apple and Intel near chip manufacturing deal to reduce TSMC reliance
Intel stock jumps 15% as Apple seeks second chip supplier beyond TSMC.
Apple and Intel have reportedly reached a preliminary understanding on a chip manufacturing deal after more than a year of negotiations, according to The Wall Street Journal. This marks a notable reversal for Apple, which began transitioning away from Intel processors in 2020 with the introduction of Apple Silicon for Macs. Since then, the company has relied almost exclusively on TSMC for chip fabrication. The new agreement, if finalized, would bring Intel back into Apple's hardware supply chain as a manufacturing partner — though not as a chip designer — potentially reducing Apple’s dependence on the Taiwanese foundry.
Apple's motivation stems from increasing pressure on TSMC's capacity. CEO Tim Cook told Reuters that "demand was off the charts" and acknowledged limited supply chain flexibility. The US government, under the Trump administration, has actively encouraged the partnership as part of its push to bring advanced semiconductor manufacturing back to American soil. Officials have also reached out to other tech leaders like Elon Musk and Jensen Huang to promote Intel as a domestic foundry option. While the US became Intel's major shareholder last year, administration sources claim that interest in the Apple deal is separate from that stake.
For Intel, the potential deal is a crucial validation of its foundry ambitions. Intel's stock jumped 15% following the WSJ report, underscoring investor enthusiasm for landing Apple as a customer. The company has been investing heavily in its manufacturing capabilities to compete with TSMC and Samsung. For Apple, the partnership offers supply chain redundancy amid geopolitical tensions and soaring demand for advanced chips. The full scope of the agreement remains unclear — including which products might use Intel-fabricated chips — but the momentum suggests a significant shift in the global semiconductor landscape.
- Apple and Intel reached a preliminary chip manufacturing agreement after a year of talks, per The Wall Street Journal.
- The deal aims to reduce Apple's reliance on TSMC while boosting Intel's foundry business — Intel stock rose 15% on the news.
- US government involvement reflects policy to promote domestic semiconductor production; Trump administration also reached out to Musk and Huang.
Why It Matters
This deal could reshape Apple's supply chain, reduce TSMC dependency, and accelerate US semiconductor manufacturing — impacting costs and geopolitical risk.