Some time ago, we told you about some good news that Intel would soon be unveiling. A series of major customers is expected for the Foundry business. Apple’s name has been mentioned for months, but this time the official announcement is getting closer and closer. Apple and Intel have been in talks for over a year, and a formal agreement seems to have been signed in recent months. In this story, it’s important to understand that the US government, which last year became a significant shareholder in Intel, has played a major role, notably by pushing US industry to relocate as much of its production as possible. For several weeks now, Commerce Secretary Howard Lutnick has been meeting with Apple decision-makers, including Tim Cook, SpaceX boss Elon Musk and Nvidia’s Jensen Huang, to urge them to collaborate with Intel.
While Intel and Apple have so far declined to comment on the numerous leaks that are beginning to appear in the business press, it seems that, to begin with, Intel will be entrusted with the production of “entry-level” M SoCs. For if history remembers that in 2020, Apple left Intel altogether to use its own Apple Silicon chips, today it’s ARM chips that the blues will have to manufacture.
The decision is the result not only of political pressure, but also of technical constraints. Indeed, Apple has acknowledged that production of some of its products, such as the iPhone, has recently been restricted due to the saturation of its main partner, TSMC. Using Intel is therefore not only a way of limiting risks by diversifying its production chain, but also of putting some economic pressure on TSMC, which is in a hegemonic position overall, with several US customers.
This rumour, which has now been confirmed, has obviously amplified the rebound in Intel shares, which have been performing well in recent weeks. More good news could come for Intel between now and the end of the year.