Apple, Intel Advance Foundry Talks for Lower-End Chips, Analyst Says

Apple Inc. (AAPL) has started developing lower-end and older-generation chips on Intel Corp.’s (INTC) 18A-P process, TF International Securities analyst Ming-Chi Kuo said, signaling a potential foundry win for Intel as it seeks major external customers. Kuo said the prospective orders would focus on chips for iPhone, iPad and Mac products, with about 80% tied to the iPhone line. The chips would use Intel’s 18A-P process and Foveros advanced packaging, while Apple is also evaluating other Intel advanced nodes. Recent reports said small-scale foundry tests could occur in 2026, with capacity ramping in 2027 to 2028 and easing in 2029. The arrangement would not mark a return to Intel x86 CPUs after Apple completed its Mac transition to Apple Silicon. Kuo said Apple’s flagship chip needs are still likely to remain heavily dependent on Taiwan Semiconductor Manufacturing Co. (TSM), potentially at 90% or more, given TSMC’s reported 2-nanometer yields above 70% versus Intel’s 2027 target of 50% for advanced-node yields.