Apple, Intel have reached preliminary chip-making deal
Apple and Intel have struck a preliminary foundry deal: Intel fabs will manufacture Apple-designed chips, diversifying Apple’s supply chain away from TSMC amid intensifying AI-chip capacity pressure.
What Matters
- Deal structure is Apple-designed chips manufactured by Intel Foundry Services, not Apple adopting Intel-designed silicon.
- US government, now Intel’s largest shareholder via a deal with CEO Lip-Bu Tan, played a direct role brokering talks.
- TSMC’s advanced nodes N5 through N2 are fully booked at max capacity; Nvidia surpassed Apple as TSMC’s largest customer.
- [HN: @aurareturn] AI chips carry higher margins than Apple silicon, so Apple risks being outbid on future TSMC node allocations.
- [HN: @_diyar] Apple’s likely motive: TSMC now negotiates from equal footing; Intel gives Apple leverage to set strict supplier terms again.
- Likely chips are lower-volume, lower-stakes products—Watch, Apple TV, entry iPad—not mainline iPhone SoCs.
- [HN: @ahartmetz] A second credible leading-edge foundry breaks TSMC’s quasi-monopoly and may help Intel remain competitive in x86.