A giant partnership that will shake things up in the technology world is coming to the fore. Apple is making a strategic move against the Taiwanese manufacturer TSMC, on which it has been almost completely dependent on processor production for years, and is sitting at the table with Intel. According to the latest information from the industry, Intel is starting preliminary tests at its own facilities for the production of chips designed by Apple. This collaboration is seen as the biggest step in Intel’s goal of opening up its foundry services to the outside within the scope of its “IDM 2.0” strategy. With this move, Apple aims to both diversify its supply chain and move production to the United States against global political risks.

• Apple signed a preliminary agreement with Intel to reduce its production dependence on TSMC and produce its chips in the USA.

• Intel has started testing on the 18A production process to produce Apple’s entry-level M series and some iPad processors.

• While production is expected to reach full capacity in 2027 or 2028, TSMC continues to maintain its role as the main supplier.

Intel 18A Technology is on the Stage for Apple

Intel Foundry Services (IFS), Intel’s foundry services unit, gains great prestige by adding one of the world’s largest technology giants such as Apple to its customer list. The 18A production process, which Apple started testing at Intel facilities, is known as one of Intel’s most advanced nodes. This technology offers transistor density and energy efficiency competitive with TSMC’s 2nm class manufacturing processes.

According to current information, Apple is not moving its entire processor family to Intel. In the first phase, the entry-level M series chips used in models such as MacBook Air and iPad Pro are planned to be produced by Intel. Intel’s Fab 52 facility in Arizona is expected to be the epicenter of this manufacturing process.

Why Is TSMC Dependency Declining?

There are several main reasons behind this strategic change by Apple. Firstly, due to the huge demand for AI chips, TSMC’s production capacity is quite squeezed. The fact that giants such as Nvidia also work with TSMC makes it difficult for Apple to supply the amount of chips it wants. Secondly, geopolitical tensions between Taiwan and China make Apple unwilling to concentrate production risk on a single region.

This deal with Intel gives Apple not only increased capacity but also a stronger hand at the bargaining table. The US government’s support factors for domestic semiconductor production with the “CHIPS Act” is among the that accelerated this rapprochement between Intel and Apple.

iPhone Processors May Also Come from Intel in the Future

Although testing is currently focused on Mac and iPad processors, analysts say Apple is grooming Intel as a long-term main supplier. Success on the 18A process may pave the way for Intel to produce some of the A series processors used in iPhone models in the future.

However, Intel still faces major challenges. Meeting Apple’s error-free production standards and bringing production efficiency (yield) to the desired levels will be the biggest test for Intel. If Intel manages this process successfully, it will consolidate its position as the third strongest player in the semiconductor world next to TSMC and Samsung.