• Apple’s reported Intel chip talks could add US capacity, but production is still years away.
• Intel must prove its process readiness and yields before Apple assigns critical chips.

Apple’s reported talks with Intel over future chip production come as Intel works to expand its contract manufacturing business and Apple faces supply constraints at TSMC, its main chip manufacturing partner.

Neither company has formally announced a deal. Reuters reported that US President Donald Trump said last week that Apple would work with Intel on chip design and manufacturing in the United States.

Apple’s manufacturing options

Apple began moving Mac computers from Intel processors to its own Apple silicon in late 2020, replacing Intel processors across newer Mac models.

Under the potential arrangement now being discussed, Intel would manufacture Apple-designed chips rather than supply its own processors.

Apple still relies heavily on TSMC for chip manufacturing. Chief Executive Tim Cook said in April that supply constraints at the Taiwanese contract manufacturer had weighed on iPhone sales. TSMC has also faced pressure from AI chip demand, including from Nvidia.

Reuters reported in May that Apple had held early discussions with Intel and Samsung Electronics about producing main processors for its devices in the United States. The talks included Apple executives visiting a Samsung plant under development in Texas and preliminary discussions with Intel about using its chipmaking services.

Intel’s foundry push has also drawn US government involvement. The US government holds a 10% stake in the company, while Nvidia has made a $5 billion investment in Intel at the request of Trump.

Intel’s production timeline

Malcolm Penn, CEO of chip research firm Future Horizons, said the earliest possible timeline would be two to three years before the first chips were produced.

“It takes 2 years to design an SoC (system on chip) of this complexity, and a further 4 months through production cycle time to volume ramp up,” Penn said.

That estimate assumes Intel’s technology is ready and its design tools are reliable enough for Apple to use. Penn said the lack of a track record creates commercial and financial risk. Intel has recently added external foundry customers. Tesla became an Intel customer in April.

Analysts remain divided on which Intel process Apple would use if the companies move forward.

Process choices remain open

Some analysts expect Apple to look at Intel’s 14A process. The technology is tied to advanced chipmaking tools but is not expected to be ready for volume production until 2028 or 2029.

Bob O’Donnell, an analyst at TECHnalysis Research, said Apple would probably want to use Intel’s 14A process technology. He said the timing means any production would still be years away.

Other analysts said Apple may choose a more mature Intel process. Options include 18A-P, a refined version of Intel’s advanced process that began initial production this month, or Intel 3, an older node with a longer operating record.

Intel’s 18A-P process entered initial production this month. Reuters reported that it offers 9% higher performance at the same power level, or 18% lower power use at the same performance level, compared with 18A.

The process is also designed to remain compatible with Intel 18A design rules.

Analysts cited 14A as a later-generation process option, while 18A and 18A-P are nearer-term manufacturing options.

Daniel Newman, CEO of Futurum Group, said volume production of Apple-designed chips at Intel is unlikely before late 2027 or early 2028. He said early work would probably focus on less critical components used in products such as the MacBook Air or some iPad Pro models.

Apple may also test Intel through lower-end products before moving more important chips to its factories, analysts said.

Yield remains a requirement

Manufacturing yield will be a key requirement. Yield refers to the percentage of chips on a wafer that work properly after production.

Intel has previously faced delays and quality issues in chip manufacturing. Analysts said Intel would have to meet the yield standards Apple has come to expect from TSMC.

Paul Meeks, head of tech research at Freedom Capital Markets, said investors are assuming strong execution from Intel. He said Intel appears to have made progress with its latest manufacturing process, but cautioned against assuming a perfect outcome.

Intel expands packaging focus

Intel has also added leadership for advanced packaging within its foundry business. Reuters reported that the company appointed Seok-Hee Lee, a former SK Hynix and SK On executive, to lead advanced packaging, system integration, back-end technology development, and back-end manufacturing at Intel Foundry.

Advanced packaging determines how multiple chip components are connected inside a single package. Intel said Lee’s role is intended to accelerate development and manufacturing across those back-end areas, while other foundry leadership focuses on front-end technology.

Intel shares outperform chip index

LSEG data showed Intel’s first-quarter growth was supported by AI server chip demand. Analyst forecasts shown in the data point to stronger growth in 2026. A separate LSEG chart showed Intel shares up 337.45% on a rebased basis, compared with a 148.77% rise for the broader chip index. The data covers the period from July 2024 through 2026.

Analysts said Apple may start with lower-risk components before considering more critical chips, with process readiness, design tools, and yield performance among the main requirements.

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