Apple, Intel Reportedly Near Chip Deal That Could Reduce TSMC Reliance

"Apple and Intel have reportedly reached a preliminary understanding on a potential chip manufacturing deal after more than a year of talks, according to The Wall Street Journal. If finalized, the agreement could give Apple another manufacturing partner beyond TSMC while handing Intel a high-profile win for its foundry business."

"The talks also carry a larger political and market charge: Apple wants more chip-supply flexibility, Intel wants proof its manufacturing comeback is real, and Washington wants more advanced semiconductor production tied to US companies."

"For years, Intel supplied processors for Macs before Apple began transitioning away in 2020 to its own in-house chips, branded Apple Silicon. That shift ended a reliance that began in 2006 and marked a major change in Apple's hardware strategy. Since then, Apple has depended on Taiwan-based manufacturer, TSMC, for production."

"Apple is seeking to diversify its chip reliance from TSMC, which is now in high demand, inadvertently affecting its price and that of the numerous products that rely on it. In a statement to Reuters, Tim Cook confirmed the impact of TSMC's current position on Apple sales, saying "demand was off the ​charts... there's just a little less flexibility in the supply chain at the moment for getting more parts.""

Apple and Intel have reportedly reached a preliminary understanding on a chip manufacturing agreement after more than a year of talks. If finalized, Apple could gain an additional manufacturing partner beyond TSMC, reducing reliance on a single high-demand supplier. Intel would receive a high-profile win that supports its foundry ambitions. The talks reflect supply-chain and political goals: Apple wants more flexibility in chip sourcing, Intel wants evidence that its manufacturing return is credible, and Washington wants advanced semiconductor production tied to US companies. Apple previously used Intel processors for Macs before shifting to Apple Silicon in 2020, and since then production has depended heavily on TSMC. It remains unclear which Apple products would use Intel chips.

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