Apple May Tap Intel for Chip Manufacturing: Q&A on the Potential Shift from TSMC

After a decade of relying solely on TSMC for its custom silicon, Apple appears to be exploring a backup plan. According to analyst Ming-Chi Kuo, Intel has begun small-scale testing of lower-end iPhone, iPad, and Mac chips using its 18A fabrication process, with volume production expected to ramp up through 2027 and 2028. This potential move would give Apple dual sourcing advantages—lower costs, stronger supply chain—and align with political pressures for increased U.S. manufacturing. Below, we answer the key questions about this developing story.

• Why is Apple considering Intel after a decade with TSMC?
• What chips might Intel manufacture for Apple?
• Which Intel process technology will be used?
• How does this differ from the Intel Macs era?
• When could production actually begin?
• Will Intel replace TSMC as Apple's main supplier?
• What political factors are at play?

Why is Apple considering Intel after a decade with TSMC?

Apple has relied exclusively on TSMC for its A-series and M-series chips since 2016, but the company is now exploring a second source. By adding Intel as a fabrication partner, Apple gains leverage to negotiate lower costs and strengthen supply chain resilience. Having two suppliers reduces the risk of production disruptions, whether from geopolitical tensions or natural disasters. Additionally, moving some chip production to the U.S. could win favor with the Trump administration, which has been pushing for more domestic manufacturing. However, Kuo emphasizes that TSMC will still handle over 90% of Apple's chip orders for the foreseeable future.

What chips might Intel manufacture for Apple?

Kuo did not specify exact models, but the testing focuses on lower-end A-series (for iPhones and iPads) and M-series (for Macs) chips. This suggests that Intel will fabricate chips for budget or mid-range devices—perhaps the iPhone SE series, iPad base models, or the MacBook Air. High-end chips like the A18 Pro or M4 Max will likely remain with TSMC due to its advanced process maturity. Apple is evaluating Intel's other advanced-node technologies beyond 18A, but for now the partnership is targeted at less performance-critical silicon.

Which Intel process technology will be used?

According to Kuo, Apple is currently testing chips on Intel's 18A process node. This is Intel's upcoming fabrication technology, expected to offer competitive performance and power efficiency. Apple is also evaluating Intel's other advanced-node options for potential future use. The 18A node is key to Intel's turnaround strategy, aiming to regain leadership in chip manufacturing. For Apple, using a second advanced node provides a technological hedge against reliance on TSMC's roadmap.

How does this differ from the Intel Macs era?

Apple's previous partnership with Intel involved buying off-the-shelf processors designed by Intel (the x86 architecture) for Macs. That ended in 2020 when Apple transitioned to its own Apple Silicon. In this new scenario, Intel's role is strictly fabrication-only—Intel will not design the chips. The chips will still be Apple-designed, using Apple's own architecture, just manufactured in Intel's U.S. factories. This is a fundamental shift: Intel becomes a foundry, not a component supplier.

When could production actually begin?

Kuo reports that Intel has already kicked off small-scale testing of these chips. Volume production is expected to ramp up throughout 2027 and 2028. This timeline suggests that Intel needs to prove its 18A process yields meet Apple's stringent standards before mass production. For now, it remains a multi-year project with no official announcement from Apple.

Will Intel replace TSMC as Apple's main supplier?

No. Kuo explicitly states that TSMC will remain responsible for more than 90% of Apple's chip supply for the foreseeable future. This partnership with Intel is a backup diversification, not a replacement. TSMC's manufacturing prowess—especially for cutting-edge nodes—makes it indispensable for Apple's premium devices. Intel may only serve a small portion of lower-end chips, complementing rather than replacing TSMC.

What political factors are at play?

The Trump administration has consistently pushed for more semiconductor manufacturing within the U.S., partly to reduce reliance on Taiwan-based TSMC amid rising geopolitical tensions with China. By rekindling a partnership with Intel, Apple could gain political goodwill and potentially avoid tariffs or regulatory hurdles. However, Kuo's report notes that the decision is primarily driven by supply chain and cost considerations rather than politics alone. Still, having U.S.-manufactured chips helps Apple align with domestic manufacturing goals.