Apple and Intel Reach Preliminary Chip Manufacturing Agreement

Apple and Intel have reached a preliminary agreement for Intel to manufacture chips used in some of Apple's future devices, The Wall Street Journal reported on May 8, 2026. Intel stock surged over 15 percent following the report. The development comes as Apple seeks to diversify its supply chain beyond its current partner TSMC.

It remains unclear what specific Apple products will use the Intel chips. Supply chain analyst Ming-Chi Kuo said Intel is expected to start shipping Apple's lowest-end M processor as soon as 2027. Apple currently works with TSMC to produce its processor chips.

U.S. Intel had asked Apple about a potential investment and ways to work more closely together. On Apple's earnings call last week, outgoing CEO Tim Cook said its primary supply constraint is the availability of advanced nodes for its SOCs.

Apple transitioned from Intel-powered computers to its own Apple Silicon. The companies' renewed cooperation follows Intel's leadership changes and government backing. Intel appointed Lip-Bu Tan as its new CEO in March 2025.

U.S. government took a 10 percent stake in Intel in August 2025. Intel spokesperson Kiana Ducey declined to comment on the reported agreement. Apple did not immediately reply to a request for comment on the reported agreement.

The news lifted broader technology shares even as the Dow Jones Industrial Average finished lower. 2 percent in that session.

The S&P 500 gained more than 2 percent during the week ending May 8, 2026. Palo Alto Networks and CrowdStrike made new highs for 2026. The agreement could help address constraints cited by Apple as demand for advanced chips grows.

Tim Cook's comments on the earnings call underscored the pressure on advanced-node availability amid rising production of AI data center chips at major foundries. Intel's renewed ties with Apple come after years of the iPhone maker building its own silicon.