Observed Signal · May 8, 2026 · Partnership · Source: CNBC Technology · Impact: 4/5 · Sentiment: Neutral
Intel Near Deal to Make Apple Chips
Reports say Apple and Intel have reached a preliminary agreement that would have Intel manufacture some of Apple’s device chips. The potential deal—first reported by the Wall Street Journal and cited by CNBC—would mark a major validation for Intel’s foundry push and create a viable second source to TSMC for Apple’s most advanced chips. The article notes Intel is ramping capacity at a new Arizona fab producing on its 18A node (with an improved 18A‑P node expected later) while Apple has been solely reliant on TSMC. Analysts suggest the deal addresses wafer-capacity constraints driven by surging AI demand and could reshape advanced-node supply dynamics if finalized.
A potential Apple–Intel chipmaking agreement would validate Intel’s foundry efforts and create a major second source for Apple’s advanced chips, shifting semiconductor supply dynamics amid surging AI-driven wafer demand.
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Key Takeaways & Evidence Grounding
- Reports indicate Apple and Intel have reached a preliminary agreement for Intel to make some chips for Apple devices.
- Intel shares rose sharply (nearly 14% intraday) following the report and are up more than 200% year-to-date.
- Apple currently relies on Taiwan Semiconductor Manufacturing Co. (TSMC) for all its most advanced chips.
- Intel is producing chips at a new Chandler, Arizona fab on its 18A node and is developing an 18A‑P node expected to scale soon.
- Intel CEO Lip‑Bu Tan said Intel’s 14A node is expected to be in volume production in 2029; Elon Musk has said he plans to rely on Intel’s 14A at his Terafab project.
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Intel CEO: Foundry Business Gaining Momentum
Intel CEO Lip‑Bu Tan said the company’s external foundry business is gaining traction as manufacturing yields improve, attracting interest from outside customers. Speaking on CNBC’s Mad Money, Tan highlighted progress on Intel’s advanced 18A process and said he’s seeing monthly yield improvements consistent with best practices. He declined to name customers but said Intel expects commitments from multiple foundry customers in the second half of the year. The article notes prior reporting of a preliminary Intel‑Apple chip manufacturing agreement and references Intel’s Arizona 18A fab and a delayed Ohio project not expected to start production until at least 2030. CFO David Zinsner previously said signals from external foundry customers should become more concrete in H2 2026 and into early 2027.
TSMC Revenue Jumps 35% on AI Chip Demand
Taiwan Semiconductor Manufacturing Co. (TSMC) reported record quarterly revenue driven by strong demand for AI chips, posting NT$1.13 trillion ($35.6 billion) for January–March, a 35% year‑on‑year increase. March revenue alone rose 45.2% year‑on‑year to NT$415.2 billion. The company is benefiting from sustained orders for advanced semiconductors from major customers including Apple and Nvidia, and reportedly raised prices for its most advanced nodes—boosting sales and margins. Analysts expect TSMC to exceed its ~30% annual growth target and have projected robust first‑quarter gross margins. The beat underscores broad industry investment in AI infrastructure; TSMC has signaled capacity expansion and higher 2026 capital spending in other reports. The company will report full first‑quarter earnings on April 16 amid ongoing supply‑chain and geopolitical risks.
Apple Plans Five iPhones Through 2027, Eyes Chinese Chips
Apple plans to introduce at least five new iPhone models between the second half of 2026 and the first half of 2027, and has increased its planned production of foldable iPhones to about 10 million units, Nikkei Asia reported. The company has secured components for roughly 80 million smartphones for H2 2026 and its total smartphone production for 2026 is expected to exceed 220 million units. Bloomberg reported Apple is in talks to source memory chips for devices sold in China from Chinese manufacturers ChangXin Memory Technologies and Yangtze Memory Technologies; those negotiations were described as ongoing and Apple has not confirmed them. The reporting frames these moves against an industrywide memory shortage driven by AI datacenter demand and notes Apple’s scale gives it stronger sourcing power than many Chinese rivals.
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