Intel Surges Back as Apple’s Secondary Foundry for 1.4nm iPhone Chips

Your iPhone’s processor was made in Taiwan. So was your MacBook’s chip, your iPad’s brain, and pretty much every piece of cutting-edge silicon Apple’s ever sold. For over a decade, the company bet its entire product line on one supplier—TSMC. That just changed.

Apple signed Intel to manufacture iPhone chips starting in 2028, breaking its exclusive relationship with Taiwan’s TSMC. The deal uses Intel’s Arizona factories and their new 1.4-nanometer “14A” process to produce chips for base iPhone models—roughly 60 million devices per year, or about 20% of total production. It’s the first time Apple has diversified its advanced chip manufacturing since ditching Intel processors for its own designs in 2020.

The timing isn’t coincidental. TSMC warned customers last month that their factories are booked solid through 2027, thanks to explosive demand from Nvidia’s AI chips. Meanwhile, geopolitical tensions around Taiwan make relying on a single island nation increasingly risky—one factory incident could halt iPhone production worth $200 billion annually. If Intel’s new fabs deliver on their promises, Apple escapes that trap. But there’s a catch: Intel hasn’t successfully mass-produced cutting-edge chips at scale in nearly five years.

The Full Story: What Just Happened

The news broke on January 23, 2026, not through Apple’s usual polished press releases, but via analyst notes from two of the most connected sources in the supply chain: Jeff Pu at GF Securities and Ming-Chi Kuo at Tianfeng Securities. According to their reports based on supplier checks, Apple plans to manufacture portions of its future A21 or A22 processors using Intel’s 14A manufacturing process—a 1.4-nanometer class technology node expected to enter mass production in 2028.

This marks a dramatic reversal in the Apple-Intel relationship. Just six years ago, Apple publicly broke up with Intel by announcing its transition away from Intel processors for Mac computers, replacing them with its own ARM-based Apple Silicon chips. That move humiliated Intel and demonstrated Apple’s determination to control its own destiny. Now, Intel is back—but only as a contract manufacturer, not a chip designer. Apple still designs every transistor of its A-series processors; Intel just handles the fabrication.

TSMC remains Apple’s primary foundry partner and will continue manufacturing the Pro-level iPhone chips that need the most advanced technology. But Intel will handle the base models—the standard iPhone 18, for example—using chips that don’t require quite as much cutting-edge horsepower. This arrangement addresses TSMC’s biggest problem: their factories are completely overwhelmed by orders for Nvidia’s AI processors, which have created a backlog stretching into late 2027.

Industry sources suggest Intel’s role could expand beyond phones. By mid-2027, the company’s even-more-advanced 18A process might also produce lower-end M-series chips for iPads and entry-level MacBooks. No official announcement has come from either Apple or Intel, but these kinds of supply chain leaks from Kuo and Pu rarely prove wrong—they predicted Apple’s M1 transition months before the official reveal.

Technical Breakdown: How This Actually Works

Apple’s A-series chips use ARM architecture, which means they’re fundamentally different from the x86 processors Intel traditionally makes. But in the foundry business, architecture doesn’t matter—Intel’s factories can manufacture any design a customer provides, whether it’s ARM, x86, or something completely custom. What matters is the manufacturing process technology.

Intel’s 14A process shrinks transistors down to the 1.4-nanometer class, which you can think of like squeezing more cars onto a highway without making the highway any wider. By packing transistors closer together, you get either better performance (because signals travel shorter distances) or better battery life (because smaller transistors need less power), or usually some combination of both. Intel claims 14A delivers 15-20% better transistor density compared to their previous generation.

Here’s a useful analogy: Think of chip manufacturing like a bakery. Apple creates the recipe—the exact design of every transistor, every connection, every logic gate in the processor. Intel (or TSMC) operates the ovens and does the actual baking at massive scale. TSMC currently runs the premium bakery that makes the fancy wedding cakes (Pro iPhones with all the advanced features). Intel will handle the high-volume muffin production (base model iPhones that sell in huge quantities but don’t need the absolute latest tech).

The technology Intel uses is genuinely impressive. Their 14A node features something called RibbonFET transistors, which replace the older FinFET design used since around 2011. Think of it like upgrading from garden hoses to high-pressure industrial pipes—the new design allows more current to flow through, boosting performance by about 10-15% compared to Intel’s previous 20A process. They also use a technology called PowerVia, which delivers electrical power from the back side of the chip instead of the front, freeing up more space for actual computing circuitry.

For non-Pro iPhones, this means A21 or A22 chips will handle everyday tasks like web browsing, photography, and standard apps without the Pro-level AI acceleration or advanced graphics features. Apple will “tape out” their designs—meaning finalize them—and send the blueprints to Intel, which will use extreme ultraviolet (EUV) lithography machines to etch the patterns onto silicon wafers. The big question is yields: Intel needs to achieve at least 80% manufacturing success rate (meaning 80 out of 100 chips work perfectly) to be cost-competitive with TSMC’s legendary consistency.

Competitive Landscape: Who Wins and Loses

The global chip foundry market has effectively become a three-way race, and Apple’s decision reshuffles the competitive dynamics significantly.

Intel is the clear winner here. Landing Apple as a foundry customer validates their entire turnaround strategy after years of embarrassing delays and lost market share. Their stock jumped 5% when the news leaked. More importantly, it proves Intel can compete at the cutting edge again—something investors had written off as impossible just two years ago.

Samsung loses the most. They’ve been trying to win back Apple’s foundry business since losing it to TSMC in 2014, but quality problems have kept them sidelined. Now Intel leapfrogs them in Apple’s supply chain, and Samsung is stuck making chips for Qualcomm and their own struggling mobile division.

TSMC maintains its position at the top but loses pricing power. With Intel as a credible alternative for non-flagship products, TSMC can’t charge quite as much of a premium. They still control the most advanced technology and will continue making Apple’s Pro chips, but the days of total dependence are over.

Market Impact: What Changes Now

The immediate financial impact centers on costs. By manufacturing base iPhone chips at Intel’s new U.S.-based Arizona fabs, Apple could reduce per-chip costs by 10-15% compared to TSMC’s Taiwan facilities. That might not sound like much, but across 60 million phones per year, it adds up to roughly $600-900 million in annual savings. Those savings could help Apple keep base iPhone prices competitive—currently around $800 retail—without sacrificing margins.

The supply chain geography matters enormously. Right now, if anything happens to Taiwan—whether that’s a natural disaster, political conflict, or just a factory fire—Apple loses its entire chip supply. Moving even 20% of production to Arizona dramatically reduces that risk. For corporate buyers purchasing thousands of iPhones for employees, that supply stability is worth paying a premium for.

The timeline for implementation runs as follows: Intel’s 18A process (the predecessor to 14A) begins pilot production in late 2027 for potential low-end Mac chips. Then 14A ramps up to full mass production in 2028 for the A21 generation iPhone chips. By 2029, analysts expect Intel to be manufacturing 20-25% of all Apple processors across iPhones, iPads, and entry-level Macs.

Investors are recalibrating valuations. TSMC still holds about 60% of the global foundry market and isn’t going anywhere, but their growth rate might slow. Intel’s turnaround story just became significantly more credible—they’re not just talking about competing with TSMC anymore, they’re actually winning major customers. The CHIPS Act subsidies, which are funding Intel’s Arizona expansion with $8.5 billion in government support, suddenly look like smart investments rather than corporate welfare.

Expert Take: Industry Reactions

Jeff Pu at GF Securities, who broke the story, calls Apple’s move “pragmatic diversification rather than desperation.” His analysis notes that Intel’s 14A process offers comparable transistor density to TSMC for non-flagship applications—meaning Apple doesn’t sacrifice quality, just cuts costs on chips that don’t need absolute bleeding-edge performance.

Ming-Chi Kuo at Tianfeng Securities, whose supply chain predictions have been eerily accurate for years, affirms the timeline through his network of Apple suppliers. He projects that by 2029, Intel will manufacture roughly 20% of Apple’s A-series chips, with potential expansion to 30% if yields meet targets. His sources indicate Apple has already completed initial design validation with Intel’s test fabs.

Benzinga’s semiconductor analysts emphasize the risk mitigation angle. “Apple watched what happened during the 2021 chip shortage,” one analyst noted. “They’re not going to let that happen again. Even if Intel costs slightly more per chip, the insurance value of having a backup supplier is worth billions.”

Not everyone is convinced. Some contrarian analysts point to Intel’s troubled track record with 18A and earlier node delays. “Intel has been promising competitive manufacturing for five years,” one skeptic argues. “They’ve consistently overpromised and underdelivered. Why should we believe 14A will be different?” Still, the overall industry consensus leans positive—Intel has real customers, real fabs under construction, and now real validation from the world’s most demanding chip buyer.

FAQ

Q: Why not use Intel for Pro iPhone chips too?

A: Pro models need TSMC’s absolute most advanced technology—currently their N3E process—to power features like advanced neural engines, ProMotion displays, and professional video processing. Intel’s 14A is excellent for mainstream computing but doesn’t quite match TSMC’s bleeding edge. Think of it like luxury cars: base iPhones get BMW engineering (Intel), but Pro models need McLaren-level performance (TSMC). Apple isn’t willing to compromise on flagship features, even to reduce risk.

Q: What exactly is Intel’s 14A process and why does it matter?

A: The “14A” designation refers to Intel’s fourth-generation Angstrom-era process technology, targeting 1.4-nanometer feature sizes (though these numbers are more marketing than physics at this scale). It uses RibbonFET gate structures and PowerVia backside power delivery to boost transistor density by about 15% compared to previous generations. For a typical iPhone chip with a 100 square millimeter die size, that means fitting roughly 12-14 billion transistors instead of 10-11 billion—more computing power without increasing battery drain.

Q: Will my iPhone run differently with an Intel-made chip?

A: No. This is purely a manufacturing change, not a design change. Apple designs every single transistor of their A-series chips using their own architecture team in Cupertino. Whether TSMC or Intel manufactures those designs doesn’t affect how the chip functions—it’s like getting the same cake recipe baked at two different bakeries using identical ingredients. Performance, battery life, and features depend entirely on Apple’s design, not who operates the fab. The only difference you might notice is “Designed by Apple in California, Manufactured by Intel in Arizona” on the box instead of mentioning Taiwan.

Apple’s pivot to Intel for some iPhone chips marks the end of Taiwan’s monopoly on the world’s most profitable smartphone. For real-time updates on tech developments like this, join our WhatsApp community—where 2,000+ founders and engineers discuss what’s actually happening in tech.