Vetera Apple analyst Ming Chi Kuo has reported a major shift in Apple’s long term chip strategy, indicating that Intel is moving closer to becoming a foundry partner for Apple.
According to his latest research, Intel is expected to begin supplying Apple with the company’s most basic M series processor as early as 2027, a development that could reshape both the U.S. chip manufacturing landscape and Apple’s future sourcing plans.
For several years, analysts and industry watchers have suggested that Apple might one day diversify its advanced chip production beyond TSMC. The idea of Intel entering that picture was often discussed but remained uncertain. Kuo now says visibility into this plan has improved, largely because Apple and Intel have been working together more closely under a confidential agreement.
Apple is waiting for Intel to release the full 18AP process development kit which is planned for early 2026. Once that milestone is met Apple will evaluate whether Intel can stay on schedule for manufacturing the lowest tier M series processor during the second or third quarter of 2027.
The lowest tier M processor is currently used in devices such as the MacBook Air and the iPad Pro. Combined shipments for 2025 are projected to be near twenty million units. Kuo notes that demand for this entry level chip may soften in 2026 due to the expected arrival of a more affordable MacBook model that will use a processor originally designed for the iPhone.
The potential deal is not expected to affect TSMC’s overall financial stability or its lead in advanced chip production. However it carries strong strategic meaning for both companies. For Apple, the ability to bring Intel on board as a second foundry aligns with supply chain diversification goals. For Intel, the opportunity to produce an Apple processor represents a symbolic step forward for its foundry business.
The next year will be crucial for this partnership as both companies prepare for the release of the complete development kit. If progress stays on track, the relationship could mark one of the most significant developments in the U.S. semiconductor industry in years.
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