# Apple and Intel Reach Preliminary Chip Manufacturing Agreement

**Published:** 2026-05-08T07:00:00.000Z  
**Topic:** Apple News  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/49a1b78e-0491-480e-ae8c-e61093ac3155

Apple and Intel have reportedly signed a preliminary deal for Intel to produce chips for Apple devices, marking a shift in Apple's semiconductor supply chain.

Apple and Intel have reached a preliminary agreement for Intel to manufacture some of the chips used in Apple’s hardware products [1]. The deal follows more than a year of negotiations and represents a significant shift for Apple, which currently relies exclusively on Taiwan Semiconductor Manufacturing Co. (TSMC) for its advanced silicon [2].

**Key takeaways**
* The agreement follows over a year of talks between the two companies and was finalized in recent months [2].
* President Donald Trump reportedly played a personal role in the negotiations, advocating for the partnership during a meeting with Apple CEO Tim Cook [2].
* While the specific products remain undisclosed, analysts suggest Apple may wait to utilize Intel’s 18A-P production process, potentially starting as early as next year [1].
* The move serves as a strategy for Apple to diversify its supply chain amid high demand for AI-capable semiconductors [4].

## A Strategic Shift in Silicon Production
For years, Apple has depended on TSMC to produce the core chips for its iPhones, Macs, and iPads [1]. However, the surge in demand for AI-related hardware has strained global wafer capacity, prompting Apple to seek alternative manufacturing sources [1]. While it is currently unclear which specific devices will feature Intel-made chips, industry analysts have previously speculated that the partnership could eventually extend to M-series chips for Macs and iPads, and potentially iPhone processors by 2028 [2].

Intel’s foundry business, which has faced historical challenges with yields and delays, is positioning itself as a viable second source for high-end manufacturing [1]. The company is currently scaling its 18A production node at a fabrication plant in Chandler, Arizona, which is intended to compete with TSMC’s 2nm process [1]. Experts suggest that Apple may wait for the refined 18A-P node, which is expected to offer improved performance and stability [1].

## Government Involvement and Market Impact
The deal arrives as the U.S. government takes an active interest in Intel’s domestic manufacturing capabilities. The Trump administration acquired a 10% stake in Intel last year, and Commerce Secretary Howard Lutnick has reportedly held meetings with leaders from Apple, Nvidia, and SpaceX to encourage partnerships with the chipmaker [3]. President Trump has publicly stated that his administration’s involvement was a catalyst for these corporate agreements [3].

The news of the preliminary deal had an immediate effect on the markets, with Intel shares rising nearly 14% and Apple shares adding 2% on Friday [1]. Despite the potential for a new partnership, industry observers note that the move is unlikely to immediately impact TSMC, as the foundry is already operating at maximum capacity [1]. TSMC leadership has recently acknowledged Intel as a "formidable competitor," a shift in rhetoric that analysts attribute to the changing landscape of the semiconductor industry [1].

## Sources
1. CNBC — [Intel shares soar on Apple chip deal report. Here's why it signals a total pivot for chipmaking](https://www.cnbc.com/2026/05/08/intel-stock-apple-chip-deal.html)
2. 9to5Mac — [Apple and Intel have reached a deal to produce future chips: report](https://9to5mac.com/2026/05/08/apple-and-intel-have-reached-a-deal-to-produce-future-chips-report/)
3. Gizmodo — [Intel Reportedly Lands a Chip Deal With Apple Thanks to Trump](https://gizmodo.com/intel-reportedly-lands-a-chip-deal-with-apple-thanks-to-trump-2000756442)
4. Tom's Hardware — [Apple reportedly strikes deal for Intel to make some of its chips — two tech giants reached a preliminary agreement for Intel to make processors for Cupertino](https://www.tomshardware.com/tech-industry/semiconductors/apple-reportedly-strikes-deal-for-intel-to-make-some-of-its-chips-two-tech-giants-reached-a-preliminary-agreement-for-intel-to-make-processors-for-cupertino)

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Cite as: TrendWatcher, "Apple and Intel Reach Preliminary Chip Manufacturing Agreement", https://www.trendwatcher.in/article/49a1b78e-0491-480e-ae8c-e61093ac3155