Kuo: Apple is testing iPhone chipset production at Intel

Apple Eyes Intel for iPhone Chip Production Amidst Supply Chain Diversification

Recent industry reports have highlighted Apple's strategic initiative to diversify its semiconductor manufacturing partners, aiming to reduce its reliance on primary supplier TSMC. Renowned Apple analyst Ming-Chi Kuo has now provided further insights, confirming these moves and detailing the Cupertino giant's burgeoning collaboration with Intel.

The partnership has reportedly commenced with Apple and Intel initiating the production of legacy Apple silicon chips. These chips are being fabricated on Intel’s advanced 18A-P process, a node comparable to the technology TSMC employs for its cutting-edge A18 Pro chip. Kuo's analysis suggests these are primarily lower-end components destined for a range of Apple devices, including iPhones, iPads, and Mac computers. Significantly, approximately 80% of these Intel-produced chips are projected for iPhone integration, with manufacturing operations taking place within the United States.

Industry observers, including Kuo, anticipate that Apple and Intel will continue small-scale testing throughout the current year. The roadmap envisions a significant ramp-up in production during 2027 and 2028, followed by a potential adjustment or reduction in capacity by 2029. This phased approach suggests a careful evaluation of Intel's capabilities. Furthermore, Apple is reportedly exploring Intel’s even more advanced process nodes, indicating a deeper long-term interest.

Despite these strategic diversification efforts and the growing collaboration with Intel, TSMC is expected to retain its dominant position as Apple's primary semiconductor fabricator. Estimates suggest TSMC will continue to supply approximately 90% of all Apple Silicon chips, underscoring its pivotal role in Apple's ecosystem.

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