Apple Considers Shifting iPhone Chip Production to Intel by 2028

In a surprising turn of events, Apple may be contemplating a shift in its chip manufacturing strategy for lower-end iPhones as early as 2028. This speculation is fueled by insights from GF Securities analyst Jeff Pu, who suggests that Intel could join the ranks of Apple's chip suppliers.

Intel's Possible Role in Apple's Future iPhones

According to analyst Jeff Pu, Apple might adopt Intel's 14A manufacturing process for some future iPhone models. However, he emphasizes that the majority of Apple’s chip production will likely continue to rely on TSMC. Under this arrangement, Intel would serve primarily as a foundry, producing chips designed entirely by Apple, while the latter maintains control over architecture, performance goals, and feature integration.

The introduction of Intel-manufactured processors is expected to focus on Apple’s non-Pro iPhones, as the tech giant appears to reserve its high-end processor production for TSMC.

The Challenges of iPhone Processor Manufacturing

Producing processors for iPhones is a complex endeavor, with a greater emphasis on performance per watt rather than sheer peak speed. Any inefficiencies can lead to decreased battery life and potential thermal issues, making efficiency essential. The compact size of iPhones adds another layer of complexity; what works in larger devices may not translate well to smaller form factors.

Given the high sales volumes of iPhones, any manufacturing yield issues could have significant repercussions. This puts a spotlight on the need for a reliable secondary foundry. If Intel can consistently meet Apple's demands, it could provide a safety net for the tech giant's ongoing chip production.

Rumors also indicate that Intel may produce the entry-level M7 chips, designed for select Macs or iPads, through its 18A manufacturing process—ideal for low-volume products with fewer thermal constraints.

Assessing Intel's Prospects

Despite the intriguing possibilities, skepticism remains surrounding Pu's claims, primarily due to the absence of any signed contracts or official commitments from Apple. His insights seem to reflect Apple’s broader strategy of diversifying its manufacturing partners to navigate potential challenges and uncertainties.

A diversification strategy may enhance Apple's resilience against market fluctuations and allow for greater flexibility in supply chains. However, as of now, no concrete arrangements with Intel have been confirmed, and speculation reigns.

Quality Must Be Paramount

Personally, I am not opposed to Intel taking on part of the chip manufacturing process for Apple. Diversification could mitigate supply chain disruptions, but any manufacturing change must not compromise the high quality associated with Apple's products. The seamless integration of hardware and software is a distinguishing feature of iPhones, and any decline in this area would be detrimental. The timeline is still distant, as 2028 is some years away for definitive conclusions, but it certainly raises interesting questions about the future of Apple's iPhone lineup.