Prime Highlights
- Intel’s stock jumped 10% after analyst Ming-Chi Kuo said the company is close to supplying Apple with its lowest-end M processor by 2027.
- The potential partnership is seen as a major boost for Intel’s foundry ambitions and could help it secure more high-value customers.
Key Facts
- The timeline depends on Intel releasing its process design kit in early 2026, enabling Apple to design chips on Intel’s manufacturing process.
- Apple currently relies entirely on TSMCfor its silicon chips, and Kuo noted the small order volume will not affect TSMC’s market leadership.
Background
Intel’s stock held on to a sharp rise in premarket trading on Monday, following a strong jump at the end of last week after an analyst forecast that the chipmaker is close to securing a major deal with Apple. Shares surged 10% on Friday when TF International Securities analyst Ming-Chi Kuo said Intel could begin supplying Apple with its lowest-end M processor as early as the second or third quarter of 2027.
Kuo said his latest industry checks show that “visibility on Intel becoming an advanced-node supplier to Apple has recently improved significantly.” He added that the final timeline depends on Intel releasing its process design kit in early 2026.
This kit will allow Apple’s engineers to begin designing chips using Intel’s manufacturing process.
Apple currently relies on TSMC for all its silicon chips across iPhones, iPads, and Macs. Kuo noted the potential deal with Intel will not significantly affect TSMC, saying that the order volume for the lowest-end M processor is small and will not impact the Taiwanese company’s leadership in the coming years.
Analysts say the possible partnership marks a key moment for Intel’s foundry ambitions. Paul Markham of GAM Global Equities said Apple would serve as a strong reference customer, adding that success could help Intel win more high-value business, including future phone processors. A deal could also align with U.S. efforts to expand domestic chip production.