Intel has reportedly started manufacturing chips for Apple that will be used in iPhone, iPad and Mac computers, according to a report by Ming-Chi Kuo this morning. At the moment, Intel's 18A-P chip manufacturing technique is used to produce chips for legacy devices (one generation behind) with 80% of orders being for chips used in iPhones.
Apple chose Intel to remanufacture their chips for the first time in 6 years because it realized that it might be difficult to use TSMC's foundry in the future. With artificial intelligence (AI) being a major focus of the technology industry at this time, Apple did not want to be a victim of the situation if TSMC chose to manufacture only AI chips in the future.
Intel tested with legacy chip production first to assess the capabilities of their foundry. The rate of Intel's 18A-P chip production at this time is lower than TSMC's technology. Intel is believed to be looking to increase its production by around 50–60% by 2027.
In addition to having a secondary chip manufacturing plant, Apple is believed to be using Intel to enable them to negotiate with TSMC in the future. However, TSMC is still believed to produce 90% of the chips Apple needs in the near future.
