Apple and Intel Reach Agreement for Chip Production
The Wall Street Journal reports that Apple has signed an agreement with Intel for the latter to produce chips for Apple devices.
This move is an important step in Apple's strategy to diversify its chip supply chain, aiming to reduce over-reliance on TSMC.
Source: Public information
ABAB AI Insight
Apple has fully transitioned to self-developed Apple Silicon (M series, A series) since 2020, but has maintained some historical collaboration with Intel. This new agreement continues its "core self-development + multi-supplier outsourcing" supply chain strategy, particularly in the context of rising geopolitical risks, prioritizing domestic U.S. production capacity to enhance resilience.
In terms of capital flow, Apple is shifting some chip orders from TSMC to Intel's factories, accelerating funding towards domestic semiconductor manufacturing in the U.S., while also helping Intel secure stable, large revenues to support its IDM 2.0 transformation. The motivation is to reduce the risk of disruption from a single factory amid escalating U.S.-China tech tensions and to meet potential U.S. government procurement and subsidy requirements through localization.
Similar to Apple's previous deep ties with Broadcom for baseband chips, and the supply chain reshoring driven by the U.S. CHIPS Act, the global high-end chip supply chain is currently transitioning from a high concentration in TSMC to diversified control in the U.S. and Europe.
Essentially, this is a restructuring of the industry chain: by collaborating with Intel, Apple aims to shift pricing power from a single Asian foundry to multiple regional suppliers. The mechanism is that Apple uses order leverage to support both the revival of U.S. semiconductors and its own supply chain security, allowing capital to accelerate from highly concentrated Asian manufacturing to a "friend-shoring + domestic" mixed capacity allocation.
ABAB News · Cognitive Law
No matter how strong self-development is, it is essential to have multiple backups in the supply chain.
When Apple turns back to give Intel orders, U.S. chip localization gains real leverage.
True supply chain security has never relied solely on oneself, but rather on placing eggs in multiple reliable baskets.