Intel to start manufacturing Apple processors
Apple may be returning as a client to its old partner Intel in chip manufacturing. According to several sources, the companies have signed a preliminary agreement under which Intel would begin manufacturing some of the processors used in Apple's devices. The news was first reported by Bloomberg, and the existence of the agreement has since been confirmed by sources including The Wall Street Journal and Engadget.
The agreement is the result of negotiations lasting over a year, which have gradually progressed towards concrete cooperation. According to sources, this is a so-called foundry model: Apple designs its own Arm-architecture-based chips, and Intel manufactures them on its own production lines, similar to how Taiwanese TSMC does for current Apple Silicon chips. It is not yet clear which products Intel-manufactured chips would end up in, but estimates suggest that it could initially be for more affordable M-series chips, and later possibly also for iPhone chipsets.
In recent years, Apple has relied almost entirely on Taiwanese TSMC's manufacturing processes for the production of all its own chipsets. However, the company has repeatedly emphasized its desire to diversify its supply chain so that it is not so tied to one supplier - and potential problems with that company. In its latest earnings release, CEO Tim Cook stated that the availability of iPhone 17 models was limited because Apple did not receive enough A19 and A19 Pro chips from TSMC. The fierce demand from AI servers and clients like Nvidia has tied up a significant portion of TSMC's capacity, which has weakened Apple's negotiating position and increased the need for alternative manufacturers.

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