Intel Begins Early Production Of Apple Chips As iPhone Maker Explores Alternatives To TSMC

Apple has reportedly started early-stage chip production with Intel as the tech giant looks to diversify its semiconductor supply chain beyond long-time manufacturing partner TSMC. The move could reshape the future of iPhone and Mac chip production globally.

May 16, 2026 | Cupertino, California

In a significant development for the global semiconductor industry, Apple has reportedly initiated early production of selected processors at Intel foundries, marking a potential shift in the company’s long-standing dependence on Taiwan Semiconductor Manufacturing Company, widely known as TSMC. According to recent reports citing analyst Ming-Chi Kuo, Apple has already begun testing low-end and legacy chips for iPhones, iPads and Mac devices using Intel’s advanced 18A-P manufacturing process.

Industry experts believe the move reflects Apple’s growing interest in reducing supply chain risks while ensuring additional chip manufacturing capacity for future devices. Reports suggest that nearly 80 percent of the initial chip production order is linked to iPhone-related processors, highlighting Apple’s continued focus on expanding its smartphone ecosystem.

Apple has relied heavily on TSMC for years to manufacture its custom-designed A-series and M-series chips powering iPhones, iPads and Mac computers. However, the global surge in demand for artificial intelligence processors and advanced semiconductors has increased pressure on manufacturing capacity worldwide. Analysts say this may have encouraged Apple to explore partnerships with Intel and other chipmakers for future production flexibility.

Reports indicate that small-scale production testing could continue through 2026 before gradually expanding in 2027 and 2028. Despite the collaboration, TSMC is still expected to remain Apple’s primary chip manufacturing partner for premium and high-performance processors used in flagship devices.

The potential partnership is also being viewed as a major opportunity for Intel, which has been aggressively rebuilding its foundry business and seeking high-profile technology clients. Following reports of Apple’s interest in Intel manufacturing services, Intel shares witnessed a strong rally in recent weeks.

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