Overview
- Wall Street Journal reporting on Friday said Apple and Intel reached a preliminary agreement for Intel to manufacture some Apple-designed chips, and both companies declined to comment.
- Following Friday’s report, Intel shares jumped about 14% to 18% while Apple rose roughly 1% to 2%, reflecting investor bets on new demand for Intel’s foundry business.
- The agreement follows more than a year of talks as the U.S. government pressed for a tie-up, with President Trump advocating to Tim Cook and Commerce Secretary Howard Lutnick meeting Apple repeatedly after Washington took roughly a 9.9% equity stake in Intel.
- Key details remain unconfirmed, including which products, the scale of production, and the manufacturing technology, and some outlets suggest limited output could begin as early as 2027.
- Apple has leaned on TSMC for most advanced chips, and a second source could help ease supply squeezes that have delayed iPhones and some Macs, reducing the risk of product shortages for customers.