Intel Begins Trial Production of Apple Chips for iPhone, iPad, and Mac, Analyst Reveals
Intel Begins Trial Production of Apple Chips for iPhone, iPad, and Mac, Analyst Reveals
Intel has quietly started small-scale production testing of Apple's lower-end A-series and M-series chips, according to a new report from reliable Apple supply chain analyst Ming-Chi Kuo. The move signals a potential end to TSMC's decade-long exclusivity as Apple's sole chip fabricator.
Kuo, known for his accurate supply chain forecasts, stated that Intel has "kicked off" limited manufacturing runs of Apple-designed chips for use in upcoming iPhone, iPad, and Mac models. The testing uses Intel's advanced 18A process technology, though Apple is also evaluating other Intel node options.
"Intel has begun initial fabrication of Apple's lower-end chips on its 18A node," Kuo wrote in a post on X (formerly Twitter). "Mass production is expected to ramp up significantly between 2027 and 2028, but volumes will still be modest compared to TSMC."
This development comes as Apple seeks to diversify its supply chain beyond Taiwan-based TSMC, which has been the exclusive producer of Apple's systems-on-a-chip since 2016. The shift could also help Apple improve pricing leverage and hedge against geopolitical risks.
Background
Apple has relied solely on TSMC for its custom chip production since transitioning away from Samsung around 2014-2016. Throughout this period, TSMC has manufactured all A-series and M-series chips, from the A10 Fusion to the M3 Ultra.
The current relationship dates back to Apple's move to in-house chip design, which began with the A4 in 2010. TSMC became the exclusive foundry partner after Apple shifted away from Samsung due to yield and performance concerns.
Earlier, Apple used Intel-designed x86 processors in Macs from 2006 to 2020. That ended when Apple began transitioning to its own Arm-based M-series chips, starting with the M1 in November 2020.
Now, Intel's role would be strictly limited to fabrication, not design. Apple will continue to create its own chip architectures, while Intel merely manufactures them in U.S. facilities.
What This Means
If this testing leads to a long-term partnership, Apple would gain a second chip supplier for the first time in nearly a decade. Dual sourcing typically drives down costs through competition and bolsters supply chain resilience against disruptions such as natural disasters or geopolitical tensions.
Kuo emphasized that TSMC will remain dominant, handling over 90% of Apple's chip orders even after Intel's ramp-up. "Intel's share will be small, likely limited to lower-end chips where advanced node requirements are less stringent," he explained.
Another strategic benefit involves Apple's relationship with the incoming Trump administration, which has strongly advocated for increased domestic semiconductor manufacturing. Sourcing some chips from Intel's U.S. fabs could help Apple avoid tariffs and win political goodwill.
However, analysts caution that Intel still faces yield and capacity constraints on its 18A node, which may limit early production volumes. Intel has struggled in recent years to regain manufacturing leadership, though its 18A process is considered competitive with TSMC's N2.
No official announcement from Apple or Intel has been made. Kuo's report aligns with earlier rumors that Apple considered Intel as a backup option, but concrete testing indicates a firmer commitment.
For consumers, the change likely won't be noticeable—chips from both foundries would perform similarly if Intel's yields are acceptable. Price reductions or improved availability could emerge in the long term, but the impact on end-product specifications will be minimal.
The move also underscores Apple's strategy of maintaining control over chip design while offloading fabrication to multiple partners, reducing reliance on any single country or company.
As Kuo concluded, "Apple is taking a cautious step to reduce concentration risk. Don't expect a massive shift—this is a hedge, not a revolution."