In an effort to diversify its chip production strategy, Apple is reportedly in discussions with Intel to produce some of its silicon components. This move aligns with a broader trend of tech companies seeking more manufacturing flexibility and resilience in their supply chains. Renowned analyst Ming Chi-Kuo has provided further insights into these developments.
According to Kuo, Apple and Intel have initiated the production of legacy Apple silicon chips utilizing Intel's 18A-P process. This technology is comparable to the process employed by TSMC for the A18 Pro chip. The expected output includes low-end chips destined for various Apple devices, including iPhones, iPads, and Macs, with Kuo estimating that approximately 80% of these will be allocated for iPhones. Notably, these chips will be manufactured in the United States, supporting domestic production initiatives.
Kuo anticipates that the collaboration between Apple and Intel will remain in a small-scale testing phase throughout this year, with plans to gradually increase production capacities in 2027 and 2028, before tapering off in 2029. Concurrently, Apple is also evaluating Intel’s advanced process nodes to further enhance its chip production capabilities.
Despite these developments, TSMC is expected to continue serving as Apple's primary supplier, commanding approximately 90% of the chip supply for Apple's Silicon products.
