Apple Returns to Intel: A Lesson in Foundry Services 2026

Apple's return to Intel as a potential foundry partner marks a significant shift in the semiconductor industry, two decades after the company first departed from Intel's chips. This move highlights Intel's evolution and the changing dynamics of chip manufacturing.

The History: Apple's Departure from Intel

In 2005, Steve Jobs announced Apple's transition from IBM's PowerPC chips to Intel processors, a partnership that lasted until Apple began designing its own silicon. By 2023, Apple had completed its transition to Apple M-series chips across all Macs, ending its reliance on Intel.

Intel's inability to act as a foundry—manufacturing chips for other companies—was a key reason Apple moved away. As Morris Chang, founder of TSMC, recalled, when asked why Apple didn't choose Intel for iPhone chips, Tim Cook replied, "Intel simply doesn't know how to be a foundry."

Why Apple Left Intel: The Foundry Problem

Intel's business model historically focused on designing and manufacturing its own chips, not producing for others. This lack of foundry expertise became evident when Apple sought a partner for iPhone chips. Intel declined the opportunity, leading Apple to TSMC.

TSMC's dedicated foundry model proved ideal for Apple, which wanted to design custom chips for its devices. The result was a series of breakthroughs, from the A-series chips for iPhones to the M-series chips for Macs.

TSMC's Dominance and Apple's Dependence

Today, TSMC manufactures virtually all of Apple's advanced chips, from iPhone processors to Mac M-chips. This reliance has become uncomfortable for Apple due to two main reasons:

• Geopolitical risks: TSMC's concentration in Taiwan exposes Apple to potential disruptions from regional tensions.
• Capacity constraints: TSMC's limited capacity for advanced nodes can hinder Apple's ability to meet demand.

These factors have prompted Apple to explore alternatives, and Intel has emerged as a potential partner.

Intel's Transformation: Becoming a Foundry

Intel has since recognized the need to adapt. Under CEO Pat Gelsinger, Intel launched Intel Foundry Services (IFS) in 2021, aiming to become a major foundry player. The company has committed billions to expand capacity and attract external customers.

Intel's advanced process nodes, such as Intel 18A, are designed to compete with TSMC's leading-edge technologies. The company has also secured deals with major customers, signaling progress in its foundry ambitions.

Apple's Return to Intel: What It Means

Apple's potential return to Intel as a foundry customer would be a major validation for Intel's turnaround. It would also diversify Apple's supply chain, reducing its dependence on TSMC.

However, challenges remain. Intel must prove it can deliver high-volume, high-quality manufacturing—something it struggled with in the past. Apple's exacting standards will test Intel's foundry capabilities. The background to this story is set out in Intel and TSMC: A Strange Rivalry With Mutual Benefits. A related thread runs through SMIC Matches TSMC Chip Density Without EUV Machines, Redefining Foundry Race. Earlier coverage in AMD Set to Overtake Intel in Revenue for the First Time shows how the argument developed.

Comparison: Intel vs. TSMC Foundry Services

What to Watch Next

Apple's decision will hinge on Intel's ability to demonstrate reliable advanced manufacturing. Keep an eye on Intel's 18A progress and any announcements of partnerships with major tech companies. A closer look at the same subject appears in Intel's Comeback: Google TPU Deal and Nvidia Interest Boost Foundry. Anyone following the wider picture can start with Intel vs TSMC: Diverging Paths in High-NA Lithography. The same theme surfaces in Intel Chip Outperforms Apple M1 in Efficiency Benchmark, which takes a different angle.

Meanwhile, TSMC continues to innovate, with its 2nm technology on the horizon. The competition between Intel and TSMC will shape the future of semiconductors. Context on how this played out before sits in NVIDIA is considering the return of the Samsung Foundry-produced GeForce RTX 3060. A companion piece, Apple is changing the way AirPods are controlled, approaches the same subject from another angle.