Intel has reportedly secured a preliminary agreement with Apple to manufacture some of the chips used in its devices, according to a report from the Wall Street Journal. The deal, if finalised, would mark a major breakthrough for Intel as it tries to rebuild its semiconductor manufacturing business.
The two companies are said to have been in detailed discussions for over a year, with a formal agreement reached in recent months, based on people familiar with the matter. Following the news, Intel shares jumped sharply, while Apple stock also saw a modest rise in trading.
For Intel, this partnership would provide a stable and high-volume customer in Apple, one of the world’s biggest consumer electronics companies. It would also help strengthen Intel’s position in advanced chip manufacturing, an area where it has lagged behind competitors like TSM in recent years.
The report also noted that the U.S. government played an active role in encouraging discussions between the two firms, as part of broader efforts to strengthen domestic chip production. Intel’s current leadership, under CEO Lip-Bu Tan, has been working to revive the company through major partnerships and investments, including support from firms like Nvidia and SoftBank.
It is still unclear which specific Apple products would use Intel-made chips. Apple has not commented on the development, and Intel has also declined to confirm details.
For Apple, the potential deal could help reduce its dependence on a single manufacturer. The company currently relies heavily on TSMC, which also supplies chips to major AI firms such as Nvidia and AMD, creating tight capacity constraints across the industry.
Apple CEO Tim Cook has previously acknowledged supply limitations affecting iPhone production, making additional manufacturing partners strategically important.
At the same time, the broader semiconductor industry is experiencing surging demand driven by artificial intelligence, making chip supply increasingly competitive and difficult to secure.
Overall, the reported Intel-Apple deal signals a significant shift in the global chip supply chain, with potential implications for manufacturing balance, geopolitical strategy, and future technology production.
