Apple Could Soon Be Buying iPhone and Mac Chips From Old Frenemy Intel
Apple and Intel: A New Chapter in Chip Manufacturing
After more than a year of talks, Apple and Intel have reached a preliminary agreement. This deal means Intel will start making processors for Apple's devices. This big news was first reported by The Wall Street Journal.
What This Means for Apple's Chips
Under this new agreement, Intel would produce chips designed by Apple. This is similar to how TSMC, Apple's current main chip maker, operates. Previous rumors hinted that Intel might focus on making some of the less powerful processors for Apple. These could include the entry-level M-series chips found in certain iPad and Mac models.
A Look Back: Apple's History with Intel
Before Apple started making its own "Apple silicon" chips, its Mac computers relied on Intel-designed processors. However, Apple often faced frustrating delays in getting these chips. This prompted Apple to shift strategies. Now, Apple designs its own Arm-based chips, which are manufactured by TSMC. This change has allowed Apple to release product updates more consistently and on a regular schedule.
Intel's Journey: From Competitor to Potential Partner
Intel is unique because it not only designs and makes its own chips but also produces chips for other companies. Historically, Apple hasn't considered Intel as a chip supplier. This was largely because Intel had fallen behind other major chip manufacturers like TSMC and Samsung in terms of technology. The two companies also have a complex past as direct competitors.
However, things at Intel have been changing. Last year, Lip-Bu Tan took over as CEO, replacing Pat Gelsinger. Tan has been actively working to revitalize Intel's chip manufacturing business, aiming to bring it back to the forefront of the industry.
Intel's Focus on Advanced Technology
A key part of Tan's strategy has been to focus on Intel's most advanced chip-making technology, known as 14A. This cutting-edge process node is expected to begin mass production in 2028 and will produce incredibly small 1.4nm chips. Intel is actively looking for companies, like Apple, to use its 14A technology. Besides 14A, Intel also manufactures 18A chips, which are built on a 1.8nm node, and continues to produce chips using older manufacturing processes.
Why Apple Needs More Chip Makers
Apple has been working hard to diversify its supply chain. The reason? Taiwan Semiconductor Manufacturing Co. (TSMC) is currently the only company making Apple's custom "Apple silicon" chips. Relying on a single supplier can be risky.
During Apple's most recent earnings call, CEO Tim Cook highlighted this issue. He mentioned that the supply of iPhone 17 models was limited during the quarter. This was because Apple couldn't get enough A19 and A19 Pro chips from TSMC. Such constraints can lead to lost sales and difficulty meeting customer demand.
The Impact of the AI Boom on Chip Production
TSMC is one of the world's leading chip manufacturers. Besides Apple, it also makes chips for many other major technology companies, including Nvidia. The current "AI boom" has created a massive demand for powerful chips used in AI servers. This high demand means TSMC has less capacity available to produce chips for consumer devices like iPhones and Macs. As a result, Apple has less power to negotiate with TSMC and convince them to prioritize its chip orders.
By bringing Intel on board, Apple aims to reduce its dependence on TSMC and ensure a more stable and diverse supply of the essential chips that power its popular devices.
This article, "Apple Could Soon Be Buying iPhone and Mac Chips From Old Frenemy Intel" first appeared on MacRumors.com
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