Intel Foundry reportedly scores Apple's M7 production on 18A-P in 2027, future smartphone chips on 14A

The Apple-Intel partnership is taking shape as a key part of Cupertino's future silicon plans for both mobile and desktop chips. Fresh reports from a GFHK (GF Holdings Hong Kong) Monthly Call, shared by leaker Jukan on X, suggest a formal agreement between the two Silicon Valley giants was already signed last year.

For over a decade, Apple has been TSMC's "darling" customer, a relationship forged after Apple famously moved away from Samsung Foundry. This partnership has historically granted Apple exclusive, early access to bleeding-edge nodes. However, the unprecedented AI boom has fundamentally altered that dynamic, with TSMC reporting shortages projected to persist beyond 2027.

Apple has been eyeing diversification of its chip production through dual sourcing, with Intel Foundry and Samsung Foundry as potential partners. Last week, The Wall Street Journal reported that Intel and Apple have struck a preliminary deal in this regard.

Earlier reports suggested that Apple's base A21 SoC might be manufactured using Intel's 18A-P process, a refinement of the 18A seen in Panther Lake (Core Ultra 3 Series), and specifically aimed at external foundry customers requiring top-tier, efficient performance.

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However, according to details from the GFHK Monthly Call, Apple's M7 SoC is slated to be the first production chip for this partnership. Expected to power the 2027-28 refresh of the MacBook, iMac, and iPad lineups, the M7 is said to be the first high-volume chip to use Intel's 18A-P manufacturing process by late 2027.

Interestingly, the first mobile candidate may not be the A21 for the 2027 iPhone 19; instead, rumors point toward an unnamed SoC that will see mass production on 14A by late 2028, hinting that Apple will still rely on TSMC for smartphone chips for now.

The report claims Apple and Intel have inked an agreement dating back to December 2025. With varying reports on the first SoC, the timeline remains murky. However, the intent is clear: outgoing CEO Tim Cook explicitly cited a lack of advanced chips as a reason Apple was unable to meet high demand for its products.

There is also significant pressure from the US government to onshore critical semiconductor manufacturing. Reports suggest that Washington played matchmaker, personally encouraging Tim Cook to diversify away from Taiwan. Whichever chip lands in Intel's hands, it'll be interesting to see how it performs compared to its TSMC counterpart.

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With Qualcomm's flagship Snapdragon 8 Elite priced at $240-$280 per unit - up from $100 for the Snapdragon 888 - chip prices are at a turning point. If Intel Foundry can provide Apple with competitive wafer pricing at iso-performance, Apple will secure a massive long-term margin advantage.

Smaller Android players are increasingly pivoting to MediaTek's Dimensity lineup as a viable hedge against Qualcomm's pricing, while AMD is reportedly in talks with Samsung, nearing a 2nm agreement. Even with industry-leading yields, efficiency, and performance, TSMC's massive premiums are pushing chip designers toward diversifying their production lines. The Apple-Intel deal is the loudest signal yet that the semiconductor industry is ending its decade-long dependency on TSMC.