Following more than a year of intensive negotiations, Apple has reportedly reached a preliminary agreement with Intel to produce a portion of the silicon that powers its sprawling device ecosystem. According to The Wall Street Journal, this deal marks a significant turning point for both companies, though the exact scale of production remains undisclosed. Given that Apple ships over 200 million iPhones annually, alongside millions of iPads and Macs, the demand for a steady, diversified supply chain is paramount.
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The return to Intel is a major shift in narrative. Before Apple transitioned to its own “Apple Silicon” in 2020, Intel was a cornerstone of the Mac’s identity, powering a decade-long renaissance that began in 2006 under Steve Jobs. Even Apple’s modern internal components have Intel DNA; the current C1 modem exists largely because Apple acquired the majority of Intel’s smartphone modem business in 2019 for $1 billion.
The partnership originally soured as Apple sought more efficiency. The 2015 12-inch MacBook, while ambitious, highlighted the limitations of Intel’s ultraportable x86 architecture at the time, often struggling with performance and thermal management. By 2020, as Intel faced stiff competition from Qualcomm in mobile and AMD in the PC space, Apple completed its pivot to ARM-based internal designs.
The revival of this partnership appears to be heavily influenced by the current political landscape. Commerce Secretary Howard Lutnick reportedly met with Apple leadership, including outgoing CEO Tim Cook, multiple times over the last year to advocate for the deal. Furthermore, President Trump reportedly made a personal appeal for the partnership during a White House meeting with Cook.
Intel’s recent resurgence is bolstered by several high-profile moves:
See also
- White House Investment: In late 2025, the White House announced a 10% stake in Intel, signalling its status as a vital national asset.
- NVIDIA Partnership: In September, Intel secured a $5 billion deal to manufacture CPUs for NVIDIA’s AI and data centre operations.
- The “Terafab” Project: In April, Intel reached an agreement to produce chips for Elon Musk’s Tesla, SpaceX, and xAI ventures.
Under the leadership of Lip-Bu Tan, who took the helm in 2025, Intel has successfully navigated initial political scrutiny to become the primary foundry for America’s tech giants. For Apple, the deal offers a way to secure domestic manufacturing and align with federal “Made in America” priorities without sacrificing its proprietary chip designs.
