From TSMC to Intel: Apple’s Entry-Level M Chips Shift in 2027

Intel is preparing to manufacture Apple’s entry-level M-series chips using its advanced 18A process node starting in 2027, marking a major diversification of Apple’s supply chain away from TSMC.

Key highlights

• 18A readiness: Intel’s 18A node (18 Angstrom, ~1.8nm) is expected to be ready for high-volume manufacturing by 2027. Apple has already tested Intel’s 18AP process design kit (PDK) version 0.9.1, with full versions (1.0/1.1) due in early 2026.
• Apple engagement: Apple reportedly signed an NDA with Intel and is qualifying the process for its lowest-end M-series chips, likely those used in MacBook Air and iPad Pro.
• Supplier split: TSMC will remain Apple’s primary supplier for high-performance SoCs (like M Pro/Max/Ultra), while Intel would focus on entry-level chips.
• Volume estimates: Estimated production volume: 15–20 million chips annually from Intel’s fabs.
• Supply chain resilience: This move strengthens Apple’s supply chain resilience, reducing reliance on TSMC and Taiwan amid geopolitical risks.

---

Strategic implications

For Intel

• Foundry breakthrough: Positions Intel as a credible alternative to TSMC and Samsung.
• Roadmap validation: Winning Apple would validate Intel’s IDM 2.0 strategy and boost confidence in its roadmap.

For Apple

• Multi-sourcing: Ensures diversified production of critical silicon to mitigate disruption risks.
• Risk management: Entry-level chips are safer to outsource than Pro/Max/Ultra variants.

For the industry

• Geopolitical shift: Signals diversification beyond Taiwan for leading-edge nodes.
• Innovation pressure: Could accelerate competition in sub-2nm nodes for TSMC and Samsung.

---

Risks and challenges

• Execution risk: Intel must deliver 18A at scale with competitive yields.
• Phased adoption: Apple likely starts with entry-level chips before expanding.
• Market dominance: TSMC’s lead is formidable; Intel’s success depends on flawless execution.

---

Bottom line

Intel’s potential deal with Apple is a watershed moment for Intel Foundry Services. If successful, it would mark Apple’s first major diversification of chip manufacturing away from TSMC, reshaping the semiconductor supply chain by 2027.