Intel may be making its way back into Apple’s hardware empire, but not in the way Mac users remember it.
Apple and Intel have reportedly reached a preliminary agreement on a possible chip manufacturing deal after more than a year of negotiations, according to the Wall Street Journal. If finalized, the deal could give Apple another manufacturing partner beyond TSMC while giving Intel a high-profile win for its foundry business.
The negotiations also carry a greater political and commercial burden: Apple wants more flexibility in chip supply, Intel wants proof that its return to manufacturing is real and Washington wants more advanced semiconductor production linked to American companies.
Apple’s Brief Migration Away from Intel
Apple and Intel have had a long but uneven relationship.
For years, Intel supplied processors for Macs before Apple in 2020 began abandoning its own in-house chips, branded as Apple Silicon. This change ended a reliance that began in 2006 and marked a major shift in Apple’s hardware strategy. Since then, Apple has depended on Taiwanese manufacturer TSMC for production.
The ongoing discussions, if finalized, would bring Intel back into Apple’s ecosystem. However, the WSJ claims that it is not yet clear which Apple products will ship with Intel chips.
Why Apple is Partnering with Intel
Apple is seeking to diversify its reliance on TSMC chips, which are now in high demand, inadvertently affecting its price and that of the many products that rely on them.
In a statement to Reuters, Tim Cook confirmed the impact of TSMC’s current position on Apple’s sales, saying “demand has been off the charts… there’s just a little less flexibility in the supply chain right now to get more parts.”
However, beyond these details, the US government played a vital role in reaching this agreement. This is likely part of the Trump administration’s stance to give domestic companies an advantage, and it has been working behind the scenes to see the two tech giants work together again.
Although the US government became Intel’s largest shareholder last year, an official in US President Donald Trump’s administration says the government’s interest in the partnership is isolated from its stake. This is simply an effort to promote Intel as an American company.
Besides Apple, the WSJ reports that the US government has also contacted tech leaders like SpaceX boss Elon Musk and Nvidia CEO Jensen Huang, who reportedly met with the Commerce Secretary several times last year.
What Both Companies Stand to Gain
As the agreement is still in its early stages, its scale and impact remain unclear. Still, reported progress, U.S. government interest, and Apple’s supply chain pressures suggest that negotiations could quickly gain momentum.
If this deal goes through, it could mark one of the most notable shifts in Apple’s manufacturing strategy since the company ditched Intel processors in favor of the current Apple Silicon in its Macs. Although Apple would still retain control of chip design, integrating Intel into its production chain would add a new dimension to a supply network that has become increasingly critical due to the state of the global semiconductor market.
For Intel, the stakes could even be higher. According to a WSJ report cited by Reuters, Intel shares rose 15% after the deal closed, a testament to the value of Apple’s patronage to investors.
For now, the announced agreement seems to be more of a signal than a certainty. But even a first-time Apple-Intel manufacturing deal would send a strong message: The world’s biggest tech companies are still trying to rethink their chip supply chains based on cost, capacity and geopolitics.
Related reading: TechRepublic rounded up the best Apple deals in May, including discounts on AirPods, iPads, MacBooks, Apple Watch, and more.
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