Apple and Intel have reached a preliminary agreement for Intel to manufacture chips for Apple devices, according to a Wall Street Journal report published Friday. The deal — described as preliminary, with binding terms and timelines still to be finalized — would mark Intel's most prominent foundry customer to date and a significant rebalancing of Apple's chip-making strategy.
Intel shares surged as much as 19% during Friday trading on the news, hitting fresh all-time highs before paring some of the move. Apple shares rose about 1.7%. According to the WSJ, the two companies engaged in more than a year of discussions before hammering out the framework in recent months.
What the Deal Covers
Under the reported agreement, Intel would manufacture chips based on Apple's own designs, in much the same arrangement Apple currently has with Taiwan Semiconductor Manufacturing Co. (TSMC). The specific products and volume commitments involved remain undisclosed. The deal does not unwind Apple's primary relationship with TSMC, which has been the sole foundry for Apple Silicon since Apple began designing its own processors.
For Intel, the agreement represents the most significant vote of confidence yet for its foundry business, which has spent years trying to attract major outside customers as it competes with TSMC and Samsung for advanced-node manufacturing.
Why Apple Is Diversifying
Apple's interest in Intel reflects mounting capacity pressure at TSMC, where surging AI server demand from Nvidia, AMD and other customers has tightened availability of leading-edge nodes. Bloomberg reported earlier this month that Apple was also exploring Samsung as a potential additional manufacturer for Apple Silicon, with a focus on building chips on US soil.
Intel is producing chips at its Chandler, Arizona facility on its 18A process — its most advanced node, intended to compete with TSMC's 2nm process, which is currently only manufactured in Taiwan. The Arizona plant is now in high-volume production, according to Intel.
A Political Dimension
The agreement lands amid a sustained White House push to bring advanced chip manufacturing back to the United States. Commerce Secretary Howard Lutnick has met repeatedly over the past year with senior Apple officials, including CEO Tim Cook, as well as SpaceX's Elon Musk and Nvidia's Jensen Huang, in an effort to direct foundry business toward Intel.
The US government holds a roughly 10% equity stake in Intel following federal support measures introduced in 2025, giving the deal a political dimension on top of its industrial implications.
What's Next
Apple has not publicly confirmed the WSJ's reporting, and the agreement is described as preliminary, suggesting binding contracts, products and timelines remain to be finalized. Investors will be watching for further detail at Intel's next earnings update and any disclosures around foundry guidance.
If the deal is finalized, it would reshape semiconductor supply chains for one of the world's most demanding chip customers and give Intel a flagship reference design to court additional foundry business as the AI buildout continues to strain global capacity.
