Apple and Intel reach preliminary chip-making deal in major US semiconductor shift
Apple has signed a preliminary agreement with Intel to manufacture some next-generation chips at Intel's Arizona fabs, the Wall Street Journal reported. The move aims to reduce Apple's reliance on TSMC and sent Intel shares up more than 15%.
Apple and Intel have signed a memorandum of understanding to fabricate some of Apple's chips at Intel's Arizona production lines, according to a Wall Street Journal report citing people close to the deal. Production would begin with advanced packaging before progressing to leading-edge wafer steps.
Apple has relied on Taiwan's TSMC as its sole supplier of cutting-edge nodes for the past decade. Supply concerns spilling over from the Iran war, including renewed worry about Taiwan, have pushed Apple to look for US-based alternatives. The White House noted that CHIPS Act incentives underpin Intel's Arizona expansion.
Intel shares closed 15.4% higher in New York while TSMC's ADRs slipped 3%. If finalised in the autumn, the deal could see roughly a quarter of Apple's A-series processors fabricated in the US from 2027 onward. Neither company has commented officially.
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