Apple May Turn To Intel For iPhone Chip Manufacturing In Major Supply Shift: Report

Apple Inc. (NASDAQ:AAPL) is reportedly set to re-engage with Intel Corp. (NASDAQ:INTC) for the supply of iPhone chips, marking a significant shift in its supply chain strategy.

Intel To Fabricate Apple Chips From 2028

As per a research note from GF Securities analyst Jeff Pu, Intel is expected to commence supplying Apple with chips produced using its 14A process, which is slated for mass production in 2028, reported MacRumors on Friday.

Pu previously forecast that starting in 2028, Intel could supply chips for Apple's non-Pro iPhone models, potentially producing part of the future A21 or A22 chips, while Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) would continue as Apple's main manufacturing partner.

Non-Pro iPhone models, such as the iPhone 15 and iPhone 15 Plus, are the regular variants that lack premium features such as ProMotion displays or telephoto lenses.

Intel's involvement is expected to be restricted to chip manufacturing, unlike the Intel Mac era that used Intel-designed x86 processors. Apple began moving away from Intel chips in 2020.

Apple–Intel Tie-Up May Ease Chip Risks

Intel’s renewed partnership with Apple could extend to Mac and iPad chips as well. In November, Ming-Chi Kuo, an analyst at Tianfeng Securities, suggested in November that Intel could start shipping Apple’s lowest-end M-series chip for select Mac and iPad models as early as mid-2027, using Intel’s 18A process.

Bank of America analyst Wamsi Mohan expects Apple to post a strong December quarter, driven by solid iPhone sales and sequentially expanding gross margins in both the December and March quarters. He estimates 85 million iPhones sold in the first fiscal quarter, two million more than previously projected, and raised his second-quarter estimate to 54 million units.

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Price Action: Over the past year, Apple stock climbed 7.91%, as per data from Benzinga Pro. On Friday, the stock edged 0.12% lower to close at $248.04.

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