Is Apple Giving Intel's Foundry Ambitions a Much-Needed Boost?

"Intel's ambitions hinge on advanced nodes like 18A, with high-volume production begun at its Arizona facility, backed by $7.86 billion in U.S. CHIPS Act funding. Yet, IFS has struggled with delays and losses, which reportedly grew to $13 billion in 2024, amid yield issues. A potential deal with Apple ( NASDAQ:AAPL ), however, could mark a turning point, injecting credibility and revenue into Intel's push for foundry independence ."

"According to TF International Securities analyst Ming-Chi Kuo, Apple could tap Intel's 18A process for entry-level M-series chips starting in 2027, which would represent a calculated diversification move. These chips, aimed at budget iPads and Macs, will involve volumes of just 15 million to 20 million units annually - a fraction of Apple's 200 million-plus silicon needs. Unlike the high-performance cores for premium iPhones, which rely on Taiwan Semi's cutting-edge 2nm and 3nm nodes, this trial focuses on simpler designs where yield risks are lower."

"Intel's 18A, featuring RibbonFET transistors and PowerVia delivery, promises power efficiency gains over prior generations. Apple, burned by supply disruptions during the pandemic, sees value in a U.S.-based alternative. Arizona's Fab 62 aligns with Apple's domestic push, reducing geopolitical exposure to Taiwan amid U.S.-China tensions. Sources indicate Apple tested 18A samples earlier this year, with yields meeting internal benchmarks for low-end applications."

Intel launched Intel Foundry Services (IFS) in 2021 to manufacture chips for external clients and challenge Taiwan Semiconductor's dominance. IFS aims to produce advanced nodes such as 18A, with high-volume production started at an Arizona Fab 62 facility supported by $7.86 billion in U.S. CHIPS Act funding. IFS experienced delays, yield issues, and losses reportedly growing to $13 billion in 2024. Apple could use Intel's 18A for entry-level M-series chips from 2027, supplying 15–20 million units annually for budget iPads and Macs. Intel's 18A uses RibbonFET and PowerVia for improved power efficiency, and Arizona production reduces geopolitical exposure to Taiwan.

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