Apple’s success is creating a chip problem
The need to source all those chips might have prompted Apple to reach out to Intel on how the two firms could work together on processor production once again. Supply chain analyst Ming-Chi Kuo now believes Apple is evaluating Intel’s advanced node technologies with a view to processor supply. “Apple’s wafer plans at Intel reflect the technology lifecycle of the [Intel] 18A-P series: small-scale testing in 2026, ramp in 2027, continued growth in 2028, and decline in 2029,” he said.
If it comes to fruition, the arrangement is a probable lifeline for Intel, which the US government feels is strategically important enough it acquired an $8.9 billion stake in the company to secure domestic advanced chip manufacturing capacity.
Intel could be TSMC’s +1
While the arrangement with Intel could end TSMC’s exclusive hold on chip production for Apple, it doesn’t seem to be a huge threat. The Taiwan-based company will continue to manufacture roughly 90% of Apple’s most powerful chips, even as the number of processors required to satiate Cupertino’s voracious appetite grows. For Intel, the promise of even 10% of Apple’s global processor demand is a lifeline for company revenue. TSMC, meanwhile, continues to invest in US chip manufacturing facilities.
Apple’s relationship with the US government suggests it also recognizes the government’s position on the national significance of Intel, which is why diverting at least some of its orders back to its old Mac processor supplier makes sense. It’s good business for Apple to maintain supplier flexibility, while it’s also good citizenship to support the government in its attempt to protect domestic chip manufacturing.
