Intel Soars on Apple Chip Deal Report

CNBC reported Friday that Apple and Intel have reached a preliminary agreement for Intel to manufacture some chips destined for Apple devices. The report sent Intel shares up nearly 14% on Friday. Apple shares gained roughly 2% on the news. Both companies declined to comment publicly.

A Landmark Moment for Intel’s Foundry Business

The Intel Apple chip deal would represent the strongest outside endorsement yet of Intel’s contract manufacturing ambitions. Intel’s foundry division spent years battling low yields, missed timelines, and a near-total lack of external customers. For now, Intel itself remains its own foundry’s primary client. Chip analyst Ben Bajarin of Creative Strategies told CNBC he is fully convinced the arrangement will eventually close. He described Intel as the only realistic option capable of supplying Apple with meaningful additional capacity at scale.

Intel’s newest fabrication plant in Chandler, Arizona is already in high-volume production. It runs on Intel’s most advanced manufacturing process, called 18A, designed to compete directly with TSMC’s leading 2nm node. Bajarin suggested Apple will likely wait for Intel’s next-generation 18A-P process, which could be ready to scale as soon as next year. He characterized 18A-P as a cleaner, more refined iteration of the current node.

Also Read: What Is a Chip Node and Why Does It Matter for AI?

Why Apple Is Seeking a Second Chip Supplier

Apple has relied exclusively on Taiwan Semiconductor Manufacturing Co. for its most advanced chips across iPhones, Macs, and other devices. TSMC is running near capacity as AI demand pulls wafer supply in every direction. Apple ranks as TSMC’s second-largest customer, behind only Nvidia, according to Bajarin. Diversifying manufacturing reduces Apple’s exposure to any single supplier and to geopolitical risk concentrated in Taiwan.

TSMC has its own new Arizona fabs under construction. Apple has already committed to producing some silicon there. But that footprint alone may not satisfy Apple’s longer-term volume needs.

Also Read: TSMC Arizona Expansion Accelerates Amid US Chip Push

Intel Stock Up Over 200% This Year

Intel’s broader recovery story runs deeper than one deal. Shares have climbed more than 200% in 2026, reflecting growing confidence in CEO Lip-Bu Tan’s restructuring plan. Intel also holds foundry commitments from Amazon and Cisco on the advanced packaging side of its business. Elon Musk’s planned Terafab in Austin, Texas, targets Intel’s future 14A node, though that relationship is unlikely to produce real output before 2029. TSMC’s own CEO recently called Intel a “formidable competitor” — a notable rhetorical shift given Apple’s reported courtship of its rival.

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