Intel to Make Apple Chips in Landmark Foundry Pact

Following a year of talks, Intel and Apple have reached a preliminary agreement for Intel to manufacture processors for Apple devices, Wall Street Journal (WSJ) reports.

The pact reunites the companies years after Macs moved away from Intel chips.

The agreement is a milestone for Intel’s contract foundry ambitions, which would gain a steady stream of demand from one of the world’s largest consumer electronics companies.

Intel’s manufacturing leadership slipped behind Taiwan Semiconductor Manufacturing Co. (TSMC) after delays in adopting Extreme Ultraviolet lithography.

EUV enabled TSMC to produce smaller, more efficient transistors, which underpinned Apple’s shift to custom silicon.

Securing Apple as a customer now compels Intel to remain at the leading edge to meet stringent performance and efficiency targets for iPhone and Mac chips.

The WSJ report, combined with strong first-quarter results, lifted investor sentiment.

Intel shares rose about 14%, then added a further 6% in pre-market trading to reach US$130.13.

US Government role and corporate outreach

The US Government played a central role in shepherding the discussions to expand domestic semiconductor manufacturing.

In 2025, the Government converted a US$9bn federal grant into equity in Intel under a deal brokered with Intel CEO, Lip-Bu Tan.

The transaction made the Government Intel’s largest shareholder with about a 10% stake.

The WSJ reported that an administration official says the goal is to bolster Intel because it is a major US chip producer: “In general, we want to and have been helping Intel. We have been trying to drum up business for Intel.”

US Commerce Secretary, Howard Lutnick, met Apple CEO, Tim Cook, multiple times over the past year, the WSJ reported.

Howard also spoke with SpaceX CEO, Elon Musk, and NVIDIA CEO, Jensen Huang, to encourage collaboration with Intel, according to the WSJ.

The partnership underscores the administration’s commitment to bring more chip production to the US and strengthen domestic manufacturing.

Apple supply chain diversification and risk

It is not yet clear which Apple products Intel will manufacture chips for, but the agreement would diversify Apple’s manufacturing base as it seeks more capacity.

Apple relies heavily on TSMC, which is often capacity constrained by demand from Gen AI chipmakers such as NVIDIA and AMD.

Tim has said on an earnings call that iPhone sales were held back by supply constraints.

By moving some production to Intel, Apple reduces single-supplier and single-region exposure, moderating geopolitical and logistics risks tied to Asia.

A broader footprint also positions Apple to respond faster to demand shifts across iPhone and Mac lines.

Strategic outlook for US chip production

The alignment of Apple’s commercial interests with US security goals makes Intel’s foundry strategy more consequential.

If finalised, the relationship could accelerate Intel’s comeback in advanced manufacturing and sharpen competition with TSMC.

For Apple, a more resilient, multi-foundry model supports product roadmaps under tighter control.

For the US, expanding at-scale fabrication strengthens a critical technology base as competition for chip leadership intensifies.