Intel shares jumped 3.4% in premarket trading on Tuesday after reports of talks with Apple to use Intel’s U.S. manufacturing sites for Apple device chips. If finalized, this would be Intel’s biggest external foundry win.
A deal with Apple would be larger than any foundry agreement Intel has made to date. Since starting its foundry strategy, Intel’s chip manufacturing unit has had only one internal client. It’s only public external deal is with Elon Musk’s TeraFab complex. TeraFab mainly serves Tesla and related companies, though the full details are still unknown. If Apple commits, it could change Intel’s outlook for foundry revenue. It would also show that Intel’s investment in U.S. manufacturing is paying off.
Samsung, one of the leading global foundries, is also said to be talking with Apple about chip manufacturing, which increases competition among foundries vying for Apple’s business. This indicates that Apple is exploring multiple manufacturing partners, including both U.S.-based competitors such as Intel and established international players, as it seeks to diversify its supply chain beyond Taiwan Semiconductor Manufacturing.
Intel has invested heavily in its foundry division to compete directly with Taiwan Semiconductor Manufacturing, the world’s top contract chipmaker, and other major rivals, such as Samsung. However, differences in manufacturing technology have made it hard for Intel to attract large outside clients. The TeraFab deal with Tesla and a government equity stake have helped support Intel’s turnaround story, but a confirmed deal with Apple would be a much bigger sign of success for Intel’s foundry goals, potentially shifting competitive dynamics with major players like TSMC and Samsung.
Neither Intel nor Apple confirmed nor commented on the reported discussions.
