Apple and Intel Reach Preliminary Chip Manufacturing Deal

Apple and Intel have reached a preliminary agreement on manufacturing some of the chips that power iPhones, iPads, and other devices. The two companies engaged in intensive, behind-closed-doors talks for more than a year prior to an agreement being reached over the past few months.

For Apple, the deal with Intel could reduce its reliance on chips from TSMC, Apple’s primary chip manufacturer, which is producing nearly all the custom silicon found in iPhones, iPads, Macs, and Apple Watches. Apple also held early-stage discussions with Samsung to use its chips.

Under the leadership of CEO Lip Bu Tan, Intel is trying to revitalize its chip manufacturing business and become a serious player in the booming foundry industry. Landing Apple would be a massive credibility boost for Intel. In April, Intel revealed a plan to join Elon Musk’s Terafab AI chip project to build processors that will power the billionaire’s orbital data centers and humanoid robots.