Intel's stock jumped 7.9% on Friday after a report that the chipmaker could begin manufacturing low-cost M-processors for Microsoft as early as 2027, a significant step for the company's casting business in its efforts to win back customers.
Analysts said Intel's prospects of becoming a supplier of advanced nodes to Apple have improved significantly recently. Apple also signed a non-disclosure agreement with Intel and received the 18AP PDK 0.9.1GA development kit for advanced nodes, with key simulation and research projects aligning with expectations.
The potential partnership would involve Intel manufacturing Apple's less expensive M-processor, which is primarily used in MacBook Air and iPad Pro devices. Total shipments of these products are currently projected at around 20 million units annually by 2025, but Kuo anticipates this figure will drop to between 15 and 20 million units in 2026 and 2027.
While the order volumes will have virtually no material impact on TSMC’s fundamentals or technological leadership in the near term, the partnership would represent a major win for Intel’s factory business.
For Apple, this move would demonstrate its support for the Trump administration's Made in the USA policy, while also securing a second source of chip manufacturing outside of TSMC. For Intel, winning Apple's advanced contract orders would represent a potential turning point for its Intel Foundry Services (IFS) business, although it still lags behind TSMC's capabilities.
The timeline for this partnership remains dependent on development progress, with Apple currently awaiting Intel's release of PDK 1.0/1.1, scheduled for the first quarter of 2026.
