Apple to complete new chip deal with Intel

Cupertino to rekindle partnership after going it alone with own-brand processors

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Apple is reportedly about to strike a deal with Intel to produce part of the chips that power its popular devices such as iPhones and iPads, according to Mobile World Live.

The agreement follows more than a year of secret negotiations between the two tech giants. The deal – financial terms of which are unknown – could reduce Apple’s dependence on Taiwan Semiconductor Manufacturing Company (TSMC), its current main chip supplier, which is responsible for manufacturing almost all of Apple’s custom-designed chips.

Interestingly, Bloomberg reported that Apple also held early-stage talks with Samsung about using its chips. These discussions included visits by Apple executives to Samsung’s new plant in Texas, which will specialise in producing advanced chips.

Under the leadership of CEO Lip Bu Tan, Intel is actively working to revive its chip manufacturing division and secure a strong position in the fast-growing foundry industry. Entering into a partnership with a major player like Apple would be an important endorsement of Intel’s efforts.

Earlier this year, Intel announced its involvement in Elon Musk’s Terafab AI chip project, which aims to develop processors for Musk’s ambitious orbital data centres and humanoid robots.

Apple had worked with Intel on chips for Macs from 2006 to 2020, when it moved away to its own M series system-on-a-chip, system-in-a-package processors.

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