Apple and Intel Reforge Alliances in Semiconductor Manufacturing
Apple Inc. is on the brink of rekindling its relationship with Intel Corp. in a manoeuvre that has the potential to significantly alter semiconductor supply chains.
Analyst Jeff Pu from GF Securities has affirmed projections indicating that Intel will undertake the fabrication of Apple-designed chips for non-Pro iPhone models commencing in 2028, employing the chipmaker’s innovative 14A process node.
This information, conveyed in Pu’s recent research note, elaborates on previous reports and underscores Apple’s strategic intent to diversify away from its longstanding partner, Taiwan Semiconductor Manufacturing Co. (TSMC).
This new arrangement ensures that Apple retains dominion over chip design, relegating Intel to a mere foundry role.
“We reiterate our expectation of potential order-wins such as Apple’s SP SoC,” Pu articulated in his note, as referenced by 9to5Mac.
His December 2025 forecast had already highlighted Intel’s involvement in the silicon for base-model iPhones, potentially encompassing the A21 or A22 chips for future iterations like the iPhone 20 or 20e.
This move does not signify a complete return to the era when Intel-powered Apple’s Macs, a chapter that concluded with the company’s transition to its own silicon in 2020.
Previously, Intel provided x86 processors; now, it would be tasked with producing Arm-based Apple silicon.
Historical context is notable—Intel previously supplied modems for iPhone 7 through 11 models—yet the current scale aims directly at core application processors.
Analyst Consensus Solidifies Timelines
Ming-Chi Kuo of Tianfeng Securities laid early predictions back in November 2025, forecasting Intel’s shipments of Apple’s entry-level M-series chip—likely the base M7—for select Mac and iPad models as early as mid-2027.
Kuo cited Apple’s nondisclosure agreement with Intel regarding the 18AP process design kit (PDK) version 0.9.1GA, with a full PDK 1.0/1.1 expected by the first quarter of 2026.
“Apple’s plan is for Intel to initiate shipments of its lowest-end M processor, utilising the 18AP advanced node, as early as Q2 or Q3 of 2027,” Kuo remarked on X, as reported by 9to5Mac.
Jeff Pu’s updates synchronise with an Intel entry into M-series production via the 18A node (approximately 2nm-class), aligning with iPhone secondary productions on the 14A node (1.4nm-class) anticipated for mass production in 2028, according to MacRumors.
Pu emphasised Intel’s “solid external customers pipeline” for the 14A, naming Apple alongside AMD and Nvidia. This dual-node approach—18A for M7 entry models in 2027 and 14A for A-series non-Pro devices in 2028—positions Intel as a supplementary supplier after TSMC, which will continue to manufacture higher-tier variants like the M7 Pro/Max or A19 Pro.
Supply-chain speculation hints that Intel’s fabrication facilities in the U.S., bolstered by CHIPS Act funding, are attractive amid rising geopolitical tensions.
Kuo stressed the importance of diversification: “Apple…still needs to secure a second source to meet supply-chain management requirements,” as articulated in 9to5Mac.
The ascendancy of Nvidia as TSMC’s principal customer has intensified this urgency, as reported by MacRumors.
Intel’s Technological Advancements Meet Apple’s Requirements
Intel’s 18A process introduces advanced technologies such as RibbonFET gate-all-around transistors and PowerVia backside power delivery, which are pivotal for enhancing efficiency in mobile chipsets. The 18AP variant, customised for Apple, supports Foveros Direct 3D stacking.
Transitioning to the 14A process integrates second-generation RibbonFET, PowerDirect, and high-NA EUV lithography, aiming to compete with TSMC’s A14 node anticipated for 2028.
Pu’s memo notes the impending release of Intel’s 14A PDK 0.5, with orders projected for late 2026 to early 2027.
For Apple, projections suggest that Intel’s production could yield 15-20 million low-end M-series units annually, according to estimates reiterated in AppleInsider.
The non-Pro iPhone allocation will remain modest initially, serving as a testbed for yield assessment before scaling production.
Following prior setbacks, Intel’s foundry operations have shown improvements, with Panther Lake CPUs currently entering internal trials at the 18A node.
However, challenges remain: Intel must demonstrate its yield rates can rival those of TSMC, especially for the power-sensitive requirements of iPhone silicon.
A failure in this regard risks relegating Intel’s role to mere M-series proofs-of-concept. Alternatively, success would validate its Foundry Services (IFS), which has suffered from diminished leadership in light of TSMC’s advancements.
Strategic Considerations Fuel Reunion
Apple’s calculus encompasses resilience against disruption and alignment with broader policy objectives.
Heavy reliance on TSMC drives exposure to geopolitical instability; Intel’s fabrications in Ohio and Arizona provide U.S. redundancy, harmonising with “Made in America” initiatives from the Trump administration.
Pu ties the anticipated successes of the 14A node to these strategic imperatives within his analysis, also covered by TechTimes.
Beyond the geopolitical landscape, pricing dynamics emerge. The dual-sourcing strategy applies pressure on TSMC to adjust costs amidst a surge in AI-driven demand.
Intel stands to enhance its prestige and revenue streams; meanwhile, Apple ensures adequate capacity for its volume-oriented iPhone lines, where margins can accommodate a slight reduction in efficiency in base models.
Recent discussions on X platforms have amplified momentum surrounding this collaboration. Posts from January 23-24, 2026, showcased Pu’s reaffirmation, with users engaging in debates regarding the implications of U.S. fabrication capabilities.
A thread in German from @appletechnikbl delved into the prospects of 14A iPhones, linking these developments to more extensive business ramifications.
Industry Repercussions and Key Observations
The broader industry landscape faces potential upheaval. While TSMC maintains its supremacy in high-end segments, Intel’s resurgence may fracture the competitive arena.
AMD and Nvidia’s inclusion in the 14A supply chain signals progress for IFS. For Intel, partnering with Apple signifies a successful resurgence following the leadership transition under Pat Gelsinger.
Apple’s proprietary design ethos remains inviolable—no regression to x86 architecture. Entry-level models will utilise Intel silicon, while Pro configurations will continue to leverage TSMC’s latest advancements.
Key timelines to monitor include the delivery of PDK 1.0/1.1 in Q1 2026 for 18A trials and the risk associated with 14A production in 2027.
Stakeholders are poised to scrutinise Intel’s Q4 2025 earnings for emerging hints related to foundry operations, although specifics remain under wraps.
Should this collaboration materialise, it will herald a remarkable new chapter in the semiconductor landscape, merging erstwhile rivals in innovative capacities.
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