Apple and Intel Reach Preliminary Chip Manufacturing Deal
Apple and Intel have reached a preliminary agreement after more than a year of intensive negotiations for Intel to manufacture chips for Apple devices, marking a major shift in Apple's supply chain strategy and a boost for Intel's contract manufacturing business.
Major Chip Industry Shift
After more than a year of discussion, Apple and Intel established a preliminary agreement that will see Intel manufacturing processors for Apple devices, according to reports on Friday, May 8, 2026.
Strategic Significance
Market Reaction:
- Intel's stock extended gains to rise 15% on the news, while Apple shares were up about 1.7% in afternoon trading
- Intensive talks between the two companies have been underway for more than a year, and they hammered out a formal deal in recent months
Government Involvement:
- The U.S. government, which became Intel's largest shareholder last year under a deal with its CEO Lip-Bu Tan, played a major role in bringing Apple to the negotiating table
- The White House is said to have played a "key role" in getting Apple to talk with Intel, including direct advocacy from President Donald Trump and Commerce Secretary Howard Lutnick
Scale and Details:
- Apple has recently shipped more than 200 million iPhones per year, and needs a steady supply of silicon for millions of other devices, including iPads and Mac computers
- It is still unclear which Apple products Intel would make chips for
Context
Before Apple adopted Apple silicon, it used Intel-designed chips for its Macs, but had to deal with continual chip delays. Apple now designs its own Arm chips that are manufactured by TSMC, allowing it to provide updates at a more regular cadence.