Apple Turns to Intel for Chip Production Amid National Security and Supply Chain Pressures
Apple Evaluates Intel's Advanced Nodes for Chip Supply
Apple Inc. is actively evaluating Intel's cutting-edge 18A-P series chip manufacturing technology, with plans for small-scale testing in 2026 and volume production ramp by 2027, according to supply chain analyst Ming-Chi Kuo. This strategic move aims to reduce Apple's overwhelming dependence on Taiwan's TSMC for its processors, a key national security concern for the United States.
In a note to investors, Kuo stated: “Apple’s wafer plans at Intel reflect the technology lifecycle of the 18A-P series: small-scale testing in 2026, ramp in 2027, continued growth in 2028, and decline in 2029.” The arrangement comes as Apple's CEO Tim Cook revealed during the Q2 2026 fiscal call that a shortage of “high-end nodes” is dampening Mac sales, even as the new MacBook Neo sets records.
“We need those advanced chips to fuel our growth,” Cook said, highlighting the urgency behind diversifying supply sources.
Background: Apple's Chip Hunger and U.S. National Interest
Apple's exploding product fleet—from iPhones to iPads, Macs to wearables—demands ever more semiconductors. The company's success creates a chip problem: it must source billions of processors annually, mainly from TSMC, which is based in Taiwan, a region with geopolitical risks. The U.S. government views domestic chip manufacturing as strategically vital and has already invested an $8.9 billion stake in Intel to secure capacity.
Partnering with Intel aligns Apple with national priorities. It's good business to maintain supplier flexibility and good citizenship to protect critical domestic infrastructure. Industry insiders note that Intel will likely produce older chip designs for entry-level iPads, iPhones, and Macs, while TSMC continues to manufacture the most advanced A-series and M-series chips.
Apple is also reportedly planning to split its iPhone launch cycle: high-end devices with TSMC's latest nodes in September, and lower-cost models like the iPhone 'e' series in spring—similar to the strategy behind the current MacBook Neo.
What This Means
Intel gets a lifeline: even capturing just 10% of Apple's processor orders would pump billions into Intel’s foundry business, adding credibility to its turnaround. However, TSMC remains Apple's dominant partner, supplying roughly 90% of its most powerful chips and continuing to invest in U.S. fabrication plants.
For consumers, the shift could mean more diversified production, potentially stabilizing supply and even leading to more affordable entry-level devices powered by Intel-made chips. For the U.S., the move strengthens semiconductor sovereignty, reducing exposure to potential Taiwan Strait disruptions.
This is a developing story. Stay tuned for updates.
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