Apple and Intel strike a chip deal — ending Apple's total TSMC dependency
Apple has reached a preliminary agreement with Intel to manufacture some of its chips, reports The Wall Street Journal. The deal would end Apple's complete reliance on TSMC — a dependency that has constrained iPhone and Mac shipments and concentrated nearly all of Apple's advanced chip production in southern Taiwan.
Why now
Apple currently accounts for roughly 25% of TSMC's revenue, but surging AI demand from Nvidia has made TSMC capacity increasingly competitive. Tim Cook acknowledged supply constraints affecting A19-series chip output at a recent earnings call. Meanwhile, the Trump administration pushed the deal along: Commerce Secretary Howard Lutnick held repeated meetings with Apple leadership, pressing the company to move production to US soil.
Intel's manufacturing arm has struggled for years to win back credibility after falling behind TSMC and Samsung. Its 18A-P process node — expected to enter production in late 2026 — is the first process widely regarded as a genuine alternative to TSMC's leading-edge N3 technology. Apple's agreement is a significant vote of confidence in that roadmap.
What gets made where
The preliminary agreement reportedly covers base M-series Mac and iPad chips and standard iPhone models — not the Pro lineup. Higher-end processors for iPhone Pro and Pro Max are expected to remain with TSMC, which still leads on raw performance and yield maturity.
The split makes sense as a hedge. If Intel 18A-P delivers, Apple gains a US-based second source and reduces geopolitical exposure from Taiwan. If yields disappoint, TSMC remains the backstop for Apple's most important products.
The bigger picture
The US government holds roughly a 10% stake in Intel through CHIPS Act funding, giving Washington a direct interest in Intel's foundry success. An Apple contract — one of the most coveted in the semiconductor industry — would validate Intel's push to compete with TSMC on advanced nodes and strengthen the case for domestic chip manufacturing. For consumers, the near-term effect is indirect: more production capacity means fewer supply bottlenecks at Apple's busiest launch windows.
Specific products, financial terms, and a formal signing date have not been disclosed.
