Apple Inc. and Intel Corp. have reached a preliminary agreement for Intel to manufacture some of the chips that power Apple devices [1].
The deal signals a strategic shift in the semiconductor supply chain as Apple seeks to meet the growing demand for AI-driven hardware. For Intel, the partnership provides a high-profile manufacturing contract that validates its foundry ambitions and strengthens its position against global competitors [4, 5].
Market reaction to the news was immediate. Apple stock rose 19% following the announcement and hit fresh all-time highs [1]. Intel has also seen significant momentum, with shares up 240% for the year [4].
This agreement places Apple alongside other major tech firms, including Microsoft, Amazon, and Tesla, who have also signed chipmaking deals with Intel [1]. The move comes as both companies report strong financial performance. Apple recently posted its best March quarter ever, recording $111.18 billion [6].
Intel's own financial trajectory has trended upward, as the company recorded its sixth consecutive revenue beat [6]. The partnership is expected to help Apple diversify its manufacturing sources while Intel leverages its capacity to produce advanced silicon for one of the world's most valuable companies.
The preliminary nature of the deal suggests that specific production volumes and timelines are still being finalized. However, the reported agreement on May 8, 2026, marks a significant pivot in the relationship between the two Silicon Valley giants [2, 3].
“Apple and Intel have reached a preliminary agreement for Intel to manufacture some of the chips that power Apple devices.”
This partnership reduces Apple's reliance on a single manufacturing source and accelerates Intel's transition into a foundry-first business model. By securing Apple as a client, Intel gains critical legitimacy for its manufacturing capabilities, while Apple ensures a more robust supply of chips to power its AI integrations across hardware lines.
