Intel and Apple have finalised a new agreement for chip production aimed at generating business revenue in the current technological advancement.
According to a report by the Wall Street Journal on Friday, the tech giants have established a preliminary agreement with Apple to manufacture certain chips that power the devices of the iPhone manufacturer, marking a major advancement for the chipmaker’s efforts to renew its manufacturing sector.
This development follows over a year of intensive discussions between the two companies, resulting in a formal agreement in recent months, as stated in the report.
In response to the news, Intel’s stock saw an increase of 15%, while Apple shares rose approximately 1.7% during afternoon trading.
Securing a contract with Apple will provide Intel with a consistent demand from one of the largest consumer electronics firms globally, enhancing both its reputation and a manufacturing division that has lagged behind TSMC in recent years.
Report claims Apple products not specified yet for Intel chips
The Journal’s report further indicated that the US government, which became Intel’s largest shareholder last year through an agreement with CEO Lip-Bu Tan, played a major role in facilitating negotiations with Apple.
The report also noted that it remains uncertain which Apple products Intel will be producing chips for, as neither company has provided further details.
For Apple, partnering with Intel could lead to a diversification in its manufacturing processes, allowing it to secure additional capacity, especially given its current reliance on TSMC’s extremely limited capacity.
Over the past year, Intel has been actively forming agreements with the US government and obtaining investments from AI chip leader Nvidia and SoftBank, as part of CEO Lip-Bu Tan’s initiative to revitalise the chipmaker.
Commerce Secretary Howard Lutnick has engaged in multiple meetings over the past year with senior Apple executives, including CEO Tim Cook, SpaceX founder Elon Musk, and Nvidia CEO Jensen Huang, in an effort to persuade them to collaborate with Intel, according to the WSJ report.
Read more: Apple reportedly picks Samsung and LG for iPhone 18 Pro screens
