Apple's lowest-end M-series processors to be fabbed on Intel 18AP process node in the USA

Intel will reportedly begin fabbing Apple's lowest-end M-series processor on American soil as early as 2027, with Intel looking to become an advanced-node semiconductor supplier to Apple moving forward.

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In a new post by insider and analyst Ming-Chi Kuo on X, we're hearing that Apple had previously signed an NDA with Intel and obtained the advanced-node 18AP PDK 0.9.1GA. Kuo says that these key simulation and research projects (such as PPA) are "tracking in line with expectations" and Apple is now waiting for Intel to release PDK 1.0/1.1, which is currently scheduled to arrive in Q1 2026.

Apple plans on having its lowest-end M processor fabbed on the Intel 18AP process node as early as Q2-Q3 2027, but this could change depending on the PDK 1.0/1.1 release, says Kuo.

Apple's new base M5 processor is fabbed by TSMC on its N3E process node, powering new versions of the MacBook Air and iPad Pro, with combined shipments of around 20 million for 2025. Apple MacBook Air laptop shipments in 2026 are said to be impacted by new cheaper MacBook models using an iPhone-class processor, with shipping estimates on the lowest-end M processor in 2026 and 2027 expected to be between 15 million and 20 million units.

Apple having its new low-end M processor fabbed at Intel will be "relatively small and virtually no material impact" on TSMC's fundamentals or its technology leadership in the years to come, but it will have fantastic benefits for Apple, Intel, and the USA.

Kuo calls out these benefits of the Apple + Intel semiconductor deal:

1. For Apple: In addition to showing strong support for the Trump administration's strongly promoted "Made in USA" policy, Apple, while clearly expected to remain highly dependent on TSMC's advanced nodes for the foreseeable future, still needs to secure a second source to meet supply-chain management requirements.
2. For Intel: The significance of winning Apple's advanced-node orders far exceeds the direct revenue and profit contribution from this business. Although Intel will still be unable to compete head-to-head with TSMC over the next several years, this suggests that the worst may soon be over for the IFS business. Looking ahead, the 14A node and beyond could capture more orders from Apple and other tier-one customers, turning Intel's long-term outlook more positive.