Apple has reportedly reached an agreement with Intel to manufacture some of its chips – a move that would end Apple’s dependence on Taiwan for cutting-edge silicon.
The Wall Street Journal broke the story, reporting that the two companies have been in intensive talks for more than a year are close to finalising a deal. Intel’s stock jumped 15% on the news.
Why it matters
Right now, every advanced chip inside your iPhone, iPad, or Mac is made by TSMC in Taiwan. Those production lines are also in heavy demand from AI chipmakers like Nvidia and AMD, and Apple CEO Tim Cook recently acknowledged that iPhone sales were held back by supply constraints there.
Intel offers a way out of any potential manufacturing bottlenecks, with the added bonus of making such essential components on US soil. You know, good old-fashioned American microchips.
It’s not just a smart logistical move, but a political one: the US government took a near-10% stake in Intel last year, and Trump has been personally pushing for Apple to utilize the company for manufacturing. Cook may be hoping to improve the supply chain and keep the president sweet in one move.
Exactly which chips Intel will take on is still unclear – and the technical details are pretty dry unless you’re a hardware engineer. But it’s likely to be a slow rollout, with Intel’s new Arizona plant likely making silicon for Apple Watch or similar before working its way up to the A-series and M-series processors that power your iPhone and Mac.
But in the long term, it could mean better supply, more US-made Apple products, and less dependence on Taiwan.