Intel Reportedly Testing Apple Silicon Chip Production: Could This Be a Game Changer?

Intel Reportedly Initiates Test Production for Apple Silicon Chips

According to information from analyst Ming-Chi Kuo, Intel has started test production of Apple Silicon chips, which are intended for use in Apple’s iPhone, iPad, and Mac devices. Kuo suggests that Intel is manufacturing entry-level and previous generation chips using its 18A-P process. While it’s unclear which specific A or M series models are being produced, approximately 80% of these chips are reportedly destined for the iPhone. Intel aims to achieve a production yield of at least 50% to 60% by next year. A significant ramp-up in mass production is anticipated for 2027 and 2028, followed by a decline the subsequent year. Furthermore, Apple is already assessing Intel’s next-generation lithography technologies — with the 14A process expected to debut in 2028.

Intel and Apple’s Preliminary Agreement on Chip Production

Last week, The Wall Street Journal reported that Intel and Apple had signed a preliminary agreement concerning the production of Apple Silicon chips. This move positions Intel as a direct competitor to TSMC, taking on a role as a subcontractor producing ARM chips based on designs provided by Sribalan Santhanam’s team at Apple. According to Ming-Chi Kuo, TSMC would still retain 90% of Apple’s chip market under the most optimistic scenario for the 18A-P process. However, this partnership is crucial for Apple to reduce its total dependence on the Taiwanese manufacturer. By engaging with Intel, Apple could potentially negotiate better pricing, secure more production capacity, and establish an American alternative, thereby mitigating the risks associated with relying on a single supplier for its chip production.