The rumor mill is buzzing with something that would have seemed impossible just a few years ago: Apple might be partnering with Intel again for chip manufacturing. But before you start thinking about a return to the x86 era, let's break down what's actually happening here. Apple's annual investment at TSMC has skyrocketed from $2 billion in 2014 to $24 billion in 2025, according to SemiAnalysis, showing just how dependent the company has become on its Taiwanese partner. Recent reports suggest that Apple could begin using Intel's manufacturing capabilities for entry-level M-series chips as early as 2027, with some analysts expecting the partnership to extend to iPhone chips by 2028. This isn't about going backward—it's about strategic diversification in an increasingly complex geopolitical landscape.

Why Apple needs a manufacturing backup plan

Here's the bottom line: Apple's current chip strategy puts all its eggs in one very expensive basket. The company's manufacturing purchase obligations have grown from $8.7 billion in 2010 to $71 billion in 2022, as reported by SemiAnalysis, highlighting the massive scale of their commitment to TSMC. But here's where the strategic vulnerability becomes clear—Apple's dominance at TSMC is facing unprecedented competition. Nvidia will consume more N3 wafers than Apple by Q4 2027, and Apple's share of TSMC's N2 process drops to just 48%.

This competitive pressure translates directly into pricing power and capacity constraints. When you've built your entire product roadmap around guaranteed access to the world's most advanced manufacturing processes, suddenly sharing that spotlight with AI chip demand creates both cost and availability risks that Apple simply can't ignore.

The geopolitical angle amplifies these concerns. With tensions around Taiwan and the incoming Trump administration's focus on domestic manufacturing, Apple appears eager to demonstrate commitment to "buying American" while reducing supply chain vulnerabilities. This isn't just political theater—it's risk management at a massive scale, hedging against scenarios where global chip supply chains face disruption.

What this means for your future Apple devices

Let's get practical about the consumer impact. Intel would handle production of standard M-series chips that power MacBook Air and iPad Pro models, with projected annual volumes between 15 million and 20 million units starting in 2027. We're looking at potentially the M6 or M7 chips for future MacBook Air, iPad Air, and iPad Pro models, while TSMC continues manufacturing the performance-critical Pro, Max, and Ultra variants.

This segmentation strategy reflects Apple's sophisticated approach to risk management and performance optimization. By starting with entry-level chips, Apple can validate Intel's manufacturing capabilities at meaningful scale while ensuring their highest-performance products remain on their most trusted manufacturing process. It's the same approach Apple uses with other components—multiple suppliers for operational security, but strategic placement based on performance requirements.

The iPhone expansion represents an even more significant vote of confidence. Analyst Jeff Pu expects Intel to reach a supply deal with Apple for "non-pro" iPhone chips starting in 2028, using Intel's future 14A process. Intel could start supplying Apple with the A22 chip for devices like the "iPhone 20" and "iPhone 20e" in around three years, bringing this diversification strategy to Apple's highest-volume product category.

PRO TIP: Don't expect any performance compromises in your entry-level devices. Apple will still design every chip—Intel's just manufacturing them to Apple's exact specifications using Apple's ARM architecture and optimized for the same performance and efficiency standards you're used to.