Apple and Intel are back in business, and this time the roles are flipped. Intel has quietly kicked off small scale production of chips for Apple devices, with most of the early orders heading straight into iPhones. The move ends years of silence between the two giants and hands Intel what one top analyst is calling a once in a generation lifeline.
Intel Starts Making iPhone Chips on 18A-P Node
The news broke on May 15 through TF International Securities analyst Ming Chi Kuo, often called the most accurate voice in Apple’s supply chain. A new report from supply chain analyst Ming-Chi Kuo claims that Apple and Intel have already started initial production of processors for iPhones, iPads and some Macs.
The split of work is striking. Per Kuo, roughly 80% of the chips are meant for iPhones. The remaining wafers are spread across iPad and Mac product lines.
These chips will utilize Intel’s 18A-P series manufacturing process, supplemented by Intel’s exclusive Foveros advanced packaging technology. Apple is not handing over its flagship silicon just yet. Kuo doesn’t name specific chips being produced by Intel, other than mentioning that they are “low-end/legacy.” Likely this means Intel is producing chips for older iPhone, iPad, and Mac models that are still on sale today.
Apple supply chain analyst Ming-Chi Kuo today said that Intel has “kicked off” small-scale testing of lower-end iPhone, iPad, and Mac chip fabrication, with production expected to ramp up throughout 2027 and 2028.
Apple Intel iPhone chip manufacturing partnership 2026
“Apple has given Intel a once in a generation window to rebuild its foundry.” Ming Chi Kuo, TF International Securities
Why Apple Is Diversifying Beyond TSMC
For more than a decade, Taiwan Semiconductor Manufacturing Company has built every advanced chip inside an iPhone or a Mac. That single supplier setup has started to crack under the weight of the AI boom.
During Apple’s latest earnings call, CEO Tim Cook said iPhone 17 models had been constrained during the quarter because Apple could not get enough A19 and A19 Pro chips from TSMC. That admission lit a fire under Apple’s plans to add a backup foundry.
Recent shortages have been driven by the massive build-out of AI data centers and higher-than-anticipated demand for Macs suitable for running AI models locally. Apple is no longer the loudest voice in the room when TSMC allocates wafer space. Nvidia now is.
Here is how the new chip supply picture looks:
| Supplier | Apple Share | Chip Type |
|---|---|---|
| TSMC (Taiwan) | Over 90% | Flagship A and M series, Pro models |
| Intel (USA) | Under 10% | Legacy and low end iPhone, iPad, Mac chips |
Kuo notes, however, that TSMC is still expected to “retain over 90% of supply share” once Intel’s operations are fully up and running.
Apple has another reason to move fast. Apple realizes that if TSMC’s advanced process resources continue to tilt toward AI, the cost and difficulty of developing new suppliers in the future may be higher. Therefore, Apple is choosing to pursue cooperation with Intel while it still has strong bargaining power.
Trump Push and US Made Chips Boost the Deal
Politics sits right in the middle of this story. Intel is now partly owned by the US, and the Trump administration has reportedly been making efforts to secure new deals for the company. Per the WSJ report, the US government played a key role in the Apple deal. “President Trump personally advocated for Intel to Cook in a meeting at the White House, according to people familiar with the matter.”
The setting helps too. Intel is indeed ramping up capacity quickly, with a new chip fabrication plant now in high-volume production in Chandler, Arizona. It’s making chips there on 18A, its most advanced node, or production process, which is meant to rival TSMC’s 2nm node that’s currently only manufactured in Taiwan.
Key facts at a glance:
- Around 80 percent of Apple’s Intel orders are for iPhone chips
- Manufacturing uses Intel’s 18A-P process plus Foveros packaging
- Small scale testing in 2026, ramp in 2027, growth in 2028
- Apple is also evaluating Intel’s even more advanced 14A node
- TSMC keeps the lion’s share with over 90 percent of Apple silicon
Apple is now expected to fabricate its 2028-launching A21 chip either on Intel’s 18A-P process or the more advanced 14A one. Do note that Apple has already procured PDK samples from Intel to evaluate its 18A-P process.
What This Means for Intel’s Big Comeback
For Intel, this is more than a contract. It is a rescue mission for the foundry business that long lagged behind TSMC and Samsung.
If it comes to fruition, the deal would be the most notable vote of confidence yet for Intel’s once-struggling chip foundry business. Intel shares are up more than 200% this year. Wall Street has already priced in a turnaround, and now the company has to deliver.
The technical hurdle is steep. Kuo says Intel’s production yield target for 2027 is first to stably reach above 50% to 60%. The material also mentions that industry chain researchers estimate TSMC’s current most advanced 2nm process node yield rate exceeds 70%. Apple is famously picky, and a low yield means higher costs and angry product managers in Cupertino.
Still, the symbolic weight is huge. “They’ve got through the rough patch and can now be considered validated as a credible second source,” he said. If Intel proves it can satisfy Apple, other big names like Nvidia, AMD and Broadcom may line up next.
There is also a quiet ripple effect. Apple has established three major product lines at Intel, with similar tape-out ratios and sales volumes. This indicates that Apple is simulating and validating the possibility of Intel becoming a full-line supplier in the future. Translation: Apple is not just testing Intel for old phones. It is auditioning the company for a much bigger role down the road.
Twenty years after Apple first put Intel inside its Macs, the two companies are once again building hardware together, just on very different terms. Intel is no longer the brain. It is the factory. The journey from rivalry to reunion proves that even in tech, old partners sometimes find new reasons to work side by side. Apple gains breathing room, Intel gains a future, and American chip manufacturing finally gets a marquee win. What do you think about Apple bringing Intel back into the fold? Share your thoughts in the comments below and join the conversation on X using #AppleIntel.
