Apple and Intel foundry services reach preliminary U.S. chip deal

Apple and Intel Foundry Services have reached a preliminary agreement to onboard Apple as a foundry customer for manufacturing of Apple Silicon on its latest foundry nodes. The arrangement could allow Apple to reduce its near-total reliance on TSMC for production of its chips.

Apple is looking to leverage the Intel 18A foundry node that offers comparable transistor densities and electric characteristics as TSMC’s 2 nm-class nodes. The agreement centers on Intel’s latest manufacturing capabilities as Apple evaluates an additional source for advanced chip production.

Intel manufactures chips on the Intel 18A node in the state of Oregon, and is building new facilities in Ohio that will cater to future nodes. The company also has chip packaging facilities in states such as Arizona and Nevada.

The move could improve Apple’s contribution to the U.S. Government’s efforts to onshore manufacturing of chips and other strategic commodities. It also positions Intel Foundry Services as a potential domestic manufacturing partner for one of the largest designers of custom silicon.