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| Apple may outsource part of its chip production to Intel Foundry (image source: Apple, edited). |
In a move that could redefine the semiconductor landscape, a new report from renowned industry analyst Ming-Chi Kuo suggests that Apple is preparing to diversify its supply chain for its acclaimed Apple Silicon chips, with Intel Foundry poised to land a significant contract.
According to Kuo, the "lowest-end" chip in a future M-series lineup is set to be manufactured not by long-time partner TSMC, but by Intel. This strategic shift marks one of the most significant changes to Apple's silicon strategy since it began the transition away from Intel processors in its Macs.
The Intel-Apple Deal: Decoding the Details
While the exact specifics of the manufacturing node remain unconfirmed, Kuo speculates that the chip in question could be produced on Intel's ambitious 18A process. This advanced node is a critical part of Intel's "5 nodes in 4 years" plan and is scheduled to become fully operational sometime around 2027, which aligns with potential product timelines.
This revelation effectively confirms and adds weight to earlier industry murmurs that Apple, potentially alongside Nvidia, was evaluating Intel Foundry for future components. Kuo’s analysis provides a clearer picture of what this partnership would entail.
The analyst took to the social media platform X (formerly Twitter) to share his insights, providing a key data point for the rumor.
A Tiered Strategy: TSMC for Pro, Intel for Entry-Level
Perhaps the most telling part of Kuo's report is the implication that this is not an all-or-nothing deal. Apple appears to be adopting a tiered manufacturing strategy. While Intel would handle the base model, TSMC would remain the sole supplier for the higher-performance variants.
This leads to a logical assumption for a future chip generation, which we'll refer to as the Apple M7 for clarity. Based on Kuo's wording, the scenario could look like this:
- Apple M7 (Vanilla): Manufactured on Intel's 18A process.
- Apple M7 Pro & M7 Max: Manufactured on TSMC's next-generation nodes, likely N2P or A18.
This bifurcated approach allows Apple to mitigate supply chain risk, potentially negotiate better pricing with both foundries, and dedicate TSMC's cutting-edge, and likely more expensive, capacity to its most demanding (and profitable) Pro and Max chips.
What Would an Intel-Made M7 Power?
The standard M7 chip, as the entry-point to the lineup, would naturally find its home in Apple's most popular and volume-driven devices. We can expect it to power future iterations of:
- iPad Air and base-model iPad
- MacBook Air (both 13-inch and 15-inch models)
- Potentially even future, more affordable versions of the Vision Pro spatial computer.
A Watershed Moment for Apple and a Landmark Win for Intel
If this report holds true, the Apple M7 would be the first Apple Silicon chip for Macs and iPads to skip TSMC entirely, representing a monumental shift in the company's manufacturing philosophy.
For Intel, landing a client of Apple's caliber for its fledgling foundry business is a resounding victory. It serves as a powerful validation of its process technology and will undoubtedly help attract other major players in the industry, such as Qualcomm, who are always looking for a competitive and reliable alternative to TSMC.
It is still too early to predict the performance and efficiency of an Intel 18A-made M7 chip. However, the tech world will be watching closely when the first consumer-grade products built on Intel's 18A node, such as the client CPUs codenamed "Panther Lake," hit the market next year. Their performance will be the first real-world indicator of the potential that Apple is betting on for its future.