MacBooks and iPads might pack Intel chips from 2027
What's the story
Apple could be looking to rekindle its partnership with Intel, but this time for the manufacturing of its entry-level M-series chips by 2027. According to supply chain analyst Ming-Chi Kuo, while Apple will design the chips, Intel will take care of production. The move could boost US-based manufacturing and diversify Apple's supply chain beyond TSMC. It would also validate Intel's turnaround efforts after years of struggles.
Production
Intel's role in Apple's M-series chip production
Kuo revealed that Intel could start making Apple's lowest-end M-series processors using its 18AP advanced manufacturing process, as early as the second or third quarter of 2027. The Intel-manufactured Apple Silicon would likely power the upcoming MacBook Air, iPad Air, and iPad Pro models, with production volumes expected between 15-20 million units. Unlike their previous deal where Intel designed x86-based processors for Macs, this partnership would see Intel solely manufacturing Apple-designed ARM-based chips.
Diversification
Apple's commitment to diversifying its supply chain
Despite TSMC being Apple's main chip supplier, the company is looking to diversify its manufacturing sources. This move is in line with Kuo's assessment of meeting supply chain management requirements. It would also give Apple a safety net for its entry-level processors. The tech giant has already signed a non-disclosure agreement with Intel, and received preliminary design specifications, with key development milestones tracking as expected.
Market impact
Intel's potential return to Apple's supply chain
The potential deal with Apple could mark a major comeback for Intel in the tech giant's supply chain. Bloomberg had reported in September that Intel had approached Apple about bagging an investment as part of its turnaround efforts.