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Intel Shares Soar on Apple Chip Deal Report. Here's Why It Signals a Total Pivot for Chipmaking
Samsung, Intel and TSMC are the only three companies in the world capable of manufacturing the most advanced chips needed for AI.
TL;DR
- Apple and Intel are reportedly close to finalizing a deal for Intel to manufacture some of Apple's chips.
- This potential deal marks a significant shift in the chipmaking industry and would be a major boost for Intel's foundry business.
- Apple currently relies solely on TSMC for its advanced chip manufacturing but is seeking to diversify due to soaring demand for AI chips.
- Intel's new fabrication plant in Arizona, producing chips on its advanced 18A node, is seen as capable of meeting Apple's scaling needs.
- The deal might involve Apple waiting for Intel's next-generation 18A-P node for production.
- Intel's foundry business has overcome previous challenges and is now considered a credible second source for chip manufacturing.
- TSMC, Apple's current sole chip manufacturer, has acknowledged Intel as a formidable competitor.