Apple Inside: A Potential Partnership with Intel for the M7 Chip

Intel may soon be back in the game of manufacturing chips for Apple, but with a twist. According to a recent report, the US-based chipmaker is poised to start producing Apple’s silicon instead of its own.

Renowned Apple supply chain analyst Ming-Chi Kuo took to Twitter to share some intriguing insights. Kuo suggested that Intel could potentially start shipping Apple’s lowest-end M processor as early as 2027, indicating that the M7 chip might be manufactured by Intel instead of Apple’s longtime partner, TSMC.

Speculations about Intel becoming an advanced-node foundry supplier to Apple have been circulating for years, but concrete evidence was lacking. However, in early 2021, Intel’s then-CEO, Pat Gelsinger, announced plans to establish a separate “Foundry Services” business to produce chips for other companies at new facilities in Arizona. Gelsinger also expressed interest in striking a deal with Apple for chip production.

While there was skepticism about Apple considering such a partnership and abandoning TSMC completely, it seems that diversifying the supply chain could be a driving factor behind this potential collaboration.

The focus of the report is on Apple’s entry-level M processor, currently utilized in devices like the MacBook Air, entry-level MacBook Pro, and iPad Pro. It is likely that the deal with Intel would only involve the base M7 chip, excluding higher-end versions like the M7 Pro or M7 Max. Kuo did not mention Apple’s A-series chips, hinting that TSMC might continue handling their production due to the extensive volumes required.

In addition to diversifying its manufacturing sources, partnering with Intel could hold strategic significance for Apple on a political level. While TSMC has established US-based facilities, it remains a Taiwanese company. On the other hand, Intel’s American roots received a significant boost earlier this year when the US government invested $8.9 billion for a 10% stake in the company.

Shifting some M-series chip production to Intel could not only reinforce Apple’s commitment to US manufacturing but also support a government-backed investment. This move could enhance Intel’s credibility in the foundry services market and attract other potential clients.

Although the timeline is not set in stone yet, Kuo mentioned that Intel is working towards finalizing the necessary arrangements. If everything proceeds as planned, Intel could commence production of M-series chips using its 18AP advanced node technology as early as the second or third quarter of 2027.

It is important to note that the information provided in this article is speculative and has not been confirmed by Apple. Readers are advised to take all rumors with caution and skepticism.

By incorporating SEO keywords naturally, this article sheds light on the potential collaboration between Apple and Intel in chip manufacturing, highlighting the strategic and political implications of such a partnership. Stay tuned for further developments in this evolving tech landscape.