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Apple, Intel have reached preliminary chip-making deal, WSJ reports
The preliminary deal could give Intel a steady Apple customer and help Apple ease tight capacity at Taiwan Semiconductor Manufacturing Co., analysts said.
On Friday, Apple and Intel reached a 'preliminary agreement' for Intel to manufacture chips for Apple hardware, concluding more than a year of intensive negotiations between the two companies.
President Trump personally advocated for the partnership during a White House meeting with Apple CEO Cook, and the US government's 10 percent stake in Intel played a key role in securing the deal.
Currently, Apple relies heavily on Taiwan-based TSMC for processor production; diversifying the supply chain allows the company to reduce dependence on foreign manufacturing, Bloomberg reported earlier this week.
Supply chain analyst Ming-Chi Kuo expects Intel to begin shipping Apple's lowest-end M processor as soon as 2027, though the exact products slated to receive the chips remain 'still unclear' at this time.
Reports indicate Apple also held exploratory discussions with Samsung regarding potential chip production, suggesting the Intel partnership represents only one part of Apple's broader manufacturing expansion efforts.