Silicon Strategy Shift: Apple Begins Chip Production with Intel via 18A-P Process
- Apple has officially begun manufacturing legacy and low-end iPhone, iPad, and Mac chips using Intel’s 18A-P process node.
- The production schedule is set to ramp up significantly by 2027, with small-scale testing currently underway.
- Despite the deal, TSMC is expected to maintain its position as the primary manufacturer for Apple’s flagship silicon, retaining over 90% of the total order volume.
A New Partnership in Silicon Manufacturing
In a significant shift for the global semiconductor landscape, Apple and Intel have officially moved beyond the rumor stage, commencing the production of Apple-designed processors at Intel’s manufacturing facilities. According to a detailed report by renowned analyst Ming-Chi Kuo, the partnership is now in its operational phase, focusing on low-end and legacy chip architectures.
Details of the Intel-Apple Production Agreement
The collaboration centers on Intel’s 18A-P series manufacturing process, which utilizes advanced Foveros packaging technology. While many industry observers expected a slower integration, Kuo’s reports indicate that the rollout is already underway. The current manufacturing mix mirrors Apple’s broader hardware footprint, with roughly 80% of the initial wafer output dedicated to iPhone processors, alongside components for iPad and Mac devices.
The Production Roadmap
The strategic deployment of these chips is structured around a multi-year lifecycle:
- 2026: Small-scale testing and initial pilot runs.
- 2027: Expected production ramp-up to meet commercial demand.
- 2028: Projected peak growth for the partnership.
- 2029: Anticipated decline as technological requirements evolve.
Mitigating Supply Chain Risk
For years, Apple has relied almost exclusively on TSMC for its cutting-edge silicon. By integrating Intel into its manufacturing supply chain, Apple is clearly aiming to diversify its sourcing and mitigate risks associated with over-reliance on a single foundry. However, experts note that this does not signal a total departure from TSMC. TSMC remains the foundry of choice for Apple’s flagship, high-performance silicon and is expected to retain over 90% of Apple’s total chip supply volume even after Intel’s operations reach full capacity.
What This Means for the Industry
While Intel is currently tasked with producing legacy and “low-end” processors, the move represents a major endorsement of Intel’s Foundry Services. Apple is reportedly already evaluating other advanced nodes within Intel’s portfolio, which could pave the way for a more complex integration in the future. As both companies navigate this high-stakes partnership, the technology sector will be closely watching Intel’s ability to scale manufacturing efficiency to match the rigorous demands of Apple’s massive product ecosystem.
