Intel shares jump nearly 14% on Apple chip deal report, signalling a major shift in the chipmaking industry
Intel agreement confirmed
Intel shares surged nearly 14% following the news, while Apple shares increased by 2%.
Market analysts believe this deal would enhance Intel’s struggling foundry business.
If finalised, it marks a key transition for Apple, which currently relies exclusively on Taiwan Semiconductor Manufacturing Co. (TSMC) for advanced chips.
TSMC faces limitations in wafer production capacity amid increasing demand for AI chips.
Intel’s recent capacity enhancements include a new plant in Chandler, Arizona, producing chips on its latest 18A process node.
Bajarin stated that Apple likely aims to wait for Intel’s 18A-P, expected to reach scaling next year.
Challenges faced by Intel’s foundry business are reportedly behind them, validating its status as a credible second source.
Another major external commitment for Intel’s foundry is anticipated to yield results only around 2029.
Elon Musk has shown interest in Intel’s forthcoming 14A chip node for his Terafab project.
Intel has major clients such as Amazon and Cisco in its advanced packaging segment.
The Apple-Intel partnership will unlikely disrupt TSMC’s operations, as their production capacity is maxed out.
TSMC’s CEO acknowledged Intel as a significant competitor, likely in response to the looming Apple deal.
Apple executives have explored Samsung’s upcoming chip manufacturing facility in Texas, indicating ongoing industry competition.
