Apple, Intel Reportedly Near Chip Deal That Could Reduce TSMC Reliance

Apple and Intel are near finalizing a chip manufacturing agreement after over a year of negotiations, according to The Wall Street Journal. If completed, the deal would provide Apple with an alternative to TSMC, its current primary manufacturer, while bolstering Intel’s foundry ambitions. The talks reflect broader industry and political goals: Apple seeks supply chain diversification amid TSMC’s high demand, while Intel aims to prove its manufacturing revival. The U.S. government has reportedly played a behind-the-scenes role, encouraging the partnership as part of efforts to strengthen domestic semiconductor production. Apple previously used Intel chips in Macs from 2006 until transitioning to its own Apple Silicon in 2020. The new agreement would mark Intel’s return to Apple’s hardware ecosystem, though it remains uncertain which products would use Intel-made chips. TSMC’s strained supply chain has already impacted Apple’s sales, with CEO Tim Cook acknowledging supply constraints in a recent statement to Reuters. The company’s demand remains high, but flexibility in sourcing components has been limited. The U.S. government’s involvement stems from its broader push to support American tech firms, including Intel, which became a major government shareholder last year. While officials deny direct influence, the administration has engaged with other tech leaders, including Elon Musk of SpaceX and Nvidia’s Jensen Huang, to promote domestic manufacturing. The deal’s specifics, including its scale and impact, are still unclear, but the progress suggests momentum could accelerate quickly. If finalized, the agreement would represent a significant shift in Apple’s manufacturing strategy since its 2020 move away from Intel. While Apple would retain control over chip design, Intel’s involvement would add a new layer to its supply network, which has faced increasing pressure due to global demand. The outcome could reshape the semiconductor industry, particularly if it sets a precedent for other tech companies to diversify their manufacturing partnerships.