Apple and Intel. Two giants who once jointly held sway over the PC industry, then parted ways, are now poised to reunite in a historic reconciliation.
On December 5, 2025, an investor report published by GF Securities analyst Jeff Pu proved to be both fascinating and shocking. In it, he states that Apple is likely to outsource part of the chip manufacturing for the iPhone models slated for release in 2028 to Intel.
Will the "A22" Chip Be Made by Intel in 2028?
Jeff Pu's report, along with corroborating information from the supply chain, points to a significant turning point in Apple's silicon strategy. Specifically, it suggests that Intel is likely to be selected as a manufacturing partner for the "A22" chip expected to power the "iPhone 20" and "iPhone 20e" set to launch in 2028.
Targeting "Non-Pro" Models, Using the Cutting-Edge "14A" Process
What's important here is that Apple is not entrusting all of its chip manufacturing to Intel.
- Limited to specific models: It's predicted that Intel will handle chips for the baseline "non-Pro" models (iPhone 20 / 20e), rather than the high-end iPhone models (the Pro series).
- Manufacturing process: The chips are expected to be built using "Intel 14A," the next-generation process node that Intel is betting its future on.
The name "14A" refers to a generation of technology that has moved beyond the old nanometer (nm) race into the "angstrom (A)" era. If this comes to pass, Intel would be providing Apple with manufacturing capability on par with—or in certain areas potentially competitive with—TSMC.
A Clear Separation Between Design and Manufacturing
One thing that shouldn't be misunderstood here is that this does not represent a "return to Intel architecture." Apple will continue to handle 100% of chip design in-house (including architecture decisions and core configurations). Intel's role will be strictly that of a "foundry"—fabricating silicon exactly according to Apple's own designs. This is the same role that TSMC in Taiwan currently plays.
The Structural Reasons Apple Is Choosing Intel as a "Second Manufacturing Base"
Why would Apple seek alternatives beyond TSMC, its long-time close partner known for overwhelming technical prowess and yield rates? The answer lies in a geopolitical and strategic "necessity" that can't be explained by cost reduction alone.
1. The Risk of East Asian Concentration and Geopolitical Tensions
Currently, virtually all of Apple's cutting-edge chip manufacturing depends on TSMC (Taiwan Semiconductor Manufacturing Company). However, rising geopolitical tensions surrounding the Taiwan Strait represent a business risk that Apple can't afford to ignore. Should production in Taiwan ever grind to a halt, iPhone supply would stop worldwide, and Apple's revenue base would collapse.
Adding Intel—which has large-scale, cutting-edge fabs in the United States—as a partner is an extremely rational form of insurance from the standpoint of "diversifying country risk."
2. Strengthening Supply Chain Resilience
The supply chain vulnerabilities exposed during the pandemic taught Apple a profound lesson. Having experienced lockdowns and logistics disruptions in Asia directly hitting product shipments, Apple has since worked to diversify its manufacturing bases (into India, Vietnam, and elsewhere).
The same logic applies to chip manufacturing. Securing a production line in North America (the United States) would reduce physical logistics risk and help build a more robust supply network.
3. Strengthening Negotiating Power
A situation where "only TSMC can make these chips" means TSMC holds the upper hand in price negotiations. By nurturing and securing Intel as a rival option, Apple can build a more favorable position for negotiating manufacturing costs in the future.
A Phased Transition Strategy: A Roadmap Starting with the Mac, Leading to the iPhone
Jeff Pu's report didn't come out of nowhere. Combined with an earlier report from noted analyst Ming-Chi Kuo, a picture emerges of Apple's carefully planned "Intel adoption roadmap."
Phase 1: Testing with the "M-Series" in Mid-2027
- Timing: Mid-2027
- Target: Lower-end M-series chips (for select Mac and iPad models)
- Technology: Intel 18A process
This is a classic example of Apple's risk management approach. Apple would first "test" the capabilities of the new fab with tablets and PCs—products that ship in relatively lower volumes and have more tolerance for issues around battery life and heat than smartphones do.
Phase 2: Expansion to the "iPhone" in 2028
Once Intel's yield rates and quality stability have been confirmed in Phase 1, Apple would finally move forward with adoption for its flagship product, the iPhone (A-series chips). Here too, the fact that Apple would start not with the top-tier "Pro" model but with the "non-Pro" models—which ship in higher volumes yet allow for easier risk diversification—speaks to Apple's characteristic caution.
Intel's Last Chance: A Transformation from IDM to Foundry
For Intel, winning an order from Apple would mean far more than simple business expansion. It would serve as the ultimate "proof" that Intel has reclaimed the technological leadership it once lost due to delays in process technology.
Rebuilding "Intel Foundry"
Under former CEO Pat Gelsinger, Intel pursued its "IDM 2.0" strategy, aiming to manufacture not only its own products but also those of other companies. However, the road hasn't been smooth. While this strategy continues under current CEO Lip-Bu Tan's leadership, delays in process development and reports of massive losses have persisted. Against this backdrop, bringing on Apple—the world's most demanding customer—as a client would signal to the world that Intel's manufacturing division (Intel Foundry) has been recognized as a legitimate rival to TSMC.
A Historic Irony and a New Relationship
Apple once transitioned from PowerPC to Intel CPUs (in 2006), and later moved away from Intel CPUs to its own in-house silicon (Apple Silicon) in 2020, citing a stagnation in Intel's chip advancement.
Now, the same Apple that "abandoned Intel's chips" would be adopting "its own chips built in Intel's factories." This twisted relationship symbolizes just how far the division of labor between "design" and "manufacturing" in the semiconductor industry has progressed.
Will the Semiconductor Industry's Power Map Be Redrawn by 2028?
The future suggested by the reports from Jeff Pu and Ming-Chi Kuo isn't simply a supplier change. It represents a fusion of the U.S.-led resurgence of semiconductor manufacturing with Apple's ultimate risk-hedging strategy.
If this partnership comes to fruition, the following impacts can be expected:
- Impact on consumers: The premise would be that users can enjoy equivalent performance without needing to be aware of whether a chip was "Made by TSMC" or "Made by Intel" (a repeat of the chip-gate controversy from the days of the iPhone 6s would not be acceptable).
- Impact on the industry: A crack could open in TSMC's dominant position, and the resulting healthy competition could accelerate the pace of technological innovation.
- Risk reduction: The iPhone's supply chain would become more resilient against geopolitical risks such as a potential Taiwan contingency.
The day when the heart of the "iPhone 20" bears the technology of Intel—once an ally, then a rival—will undoubtedly mark a new chapter in the history of Silicon Valley. The moves of both Apple and Intel are well worth continued attention.
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