Intel manufactures chips for Apple: A turning point in bringing the semiconductor supply chain back to the US.
Apple and Intel have officially reached a chip manufacturing agreement after more than a year of negotiations, marking a significant step in bringing high-tech production lines back to the US and reducing reliance on TSMC.
Intel and Apple have reached a chip manufacturing partnership agreement after more than a year of tense negotiations. This move not only helps Intel revive its foundry business but also supports Apple in diversifying its partner network and becoming more proactive in bringing critical manufacturing processes back to North America. According to a report from the Wall Street Journal (WSJ), this is the result of a broad diplomatic and economic effort to rebuild America's semiconductor position.
Intel's transformation and support from the US government.
Intel currently operates two core businesses: chip design and manufacturing. Both areas faced significant challenges before Lip-Bu Tan took over as CEO last year with a commitment to revitalizing the company. One of the most important levers that helped Intel regain its position was intervention from the U.S. government.
In the summer of 2025, the government converted nearly $9 billion in federal subsidies into stock, giving the state a 10% stake in Intel. Additionally, U.S. Commerce Secretary Howard Lutnick played a key mediating role, actively meeting with top tech leaders such as Tim Cook (CEO of Apple), Elon Musk (CEO of SpaceX), and Jensen Huang (CEO of Nvidia) over the course of a year to promote collaboration with Intel.
Partner ecosystem: From Nvidia to SpaceX
Prior to reaching an agreement with Apple, Intel had already made significant progress with other technology partners. In September 2025, Nvidia announced a $5 billion investment in Intel to produce custom CPUs specifically for data centers. This signals that major players are increasingly trusting Intel's manufacturing capabilities.
Meanwhile, billionaire Elon Musk and Intel have also announced plans to build a chip manufacturing plant in Texas. This project, codenamed Terafab, aims to supply chips to Musk's ecosystem, which includes Tesla, xAI, and SpaceX. Attracting major clients like Nvidia and SpaceX has laid a solid foundation for Apple to consider shifting some of its orders from TSMC to Intel.
Technical roadmap: 18A and 14A processes for Apple chips
Intel manufacturing chips for Apple will help the company reduce its dependence on TSMC – its Taiwanese partner which currently holds a large share of the advanced chip manufacturing market. The collaboration between the two companies is expected to span several key technological stages.
According to analyst Ming-Chi Kuo, Intel could begin supplying low-end M-series chips to Apple as early as mid-2027. These chips are expected to be manufactured using Intel's 18A process – its most advanced 2nm process deployed in North America. Additionally, Jeff Pu from GF Securities stated that Apple is considering using Intel's 14A process to manufacture the A22 chip, expected to power some iPhone models launching in 2028.
Strategic implications for global supply chains
This agreement is not only commercial but also has significant geopolitical implications. Bringing advanced chip manufacturing to Texas and other areas of the US gives Apple greater control over global supply chain fluctuations. While both Apple and Intel have declined to comment officially at this time, investment moves from Nvidia and Elon Musk's Terafab project suggest a new semiconductor alliance is gradually forming in the US, with Intel at its core.
The combination of Apple's superior design and Intel's rapidly upgrading manufacturing infrastructure promises to create new breakthroughs for iPhone, iPad, and Mac product lines in the near future.
