San Francisco, May 8, 2026, 11:04 PDT
- The Wall Street Journal reported that Intel has struck a preliminary deal to manufacture certain chips for Apple devices.
- Apple could secure a domestic manufacturing option through the deal, supplementing its primary chip partner, TSMC.
- Intel shares surged after the report, adding to gains as optimism around its foundry business continued to drive the rally.
Intel has struck a tentative agreement to produce chips for Apple, according to the Wall Street Journal, signaling a possible win for the U.S. chip giant’s efforts to revive its contract manufacturing arm. No word yet on which Apple devices might end up with Intel-manufactured components.
Timing is key here. Apple wants to loosen its reliance on Taiwan Semiconductor Manufacturing Co., searching for more flexibility in its supply chain. Intel, on the other hand, is in need of a major external client to show its foundry business—those plants producing chips for third parties—can really play in the top league.
Intel was trading up 14.7% in the U.S., with Apple ahead by roughly 1.7%. According to Yahoo Finance, Intel is now heading for its fourth record close in a row, after Apple’s report became the latest catalyst for a wave of gains across chip stocks.
The Journal said the two firms spent over a year in deep negotiations before locking in a deal just in the last few months. Both Apple and Intel stayed quiet when asked by the Journal, per 9to5Mac, which referenced the original report. Reuters noted Intel wouldn’t comment, and Apple didn’t get back with a response right away.
The deal doesn’t signal a shift back to Intel chips for Apple. The company engineers its own core processors for products like the iPhone, iPad, and Mac—the key question is who gets the contract to build those chips, and how big the production run is.
Earlier this week, Bloomberg reported that Apple looked into tapping Intel and Samsung Electronics for U.S.-based production of its primary device chips. According to Bloomberg, Apple execs even toured a Samsung chip facility currently being built in Texas.
The deal widens the competitive landscape. TSMC is still Apple’s top pick for advanced chip production, and Samsung is pushing to close the distance in contract manufacturing. Nvidia’s appetite for advanced wafers is pressuring capacity throughout the industry.
Apple’s appetite for chips isn’t exactly hidden in the data. Chief Executive Tim Cook told Reuters last week that iPhone demand was “off the charts,” yet Apple faced “less flexibility” in sourcing extra components across its supply chain. Reuters
The Journal said the U.S. government was involved in getting Apple and Intel talking. Reuters reported the White House didn’t respond right away when asked for comment.
Months back, analyst Ming-Chi Kuo suggested Intel’s odds of landing Apple as an advanced-node customer had “improved significantly.” He pointed out that if Apple—and other major buyers—start using future Intel nodes, the company’s longer-term picture could “more positive.” The Verge
Risks remain front and center. This is only a preliminary agreement—details on the product scope are still under wraps. Earlier reports flagged Apple’s worries: reliability, scale, and anything outside TSMC’s proven platform. For Intel, a foundry deal with Apple means little unless it can actually hit high yields, keep supply consistent, and meet the high bar for Apple-grade quality.
Traders are taking the report as a win for Intel right now. For Apple, it’s less about the headline and more about negotiating power, maybe even a backup plan, in a chip supply chain getting squeezed by geopolitical risk, surging AI demand, and production bottlenecks that outpace product refreshes.
