Apple will use Intel’s 18A process for M-series chips starting in 2027, aiming at budget iPads and Macs with 15-20 million units annually. Intel’s foundry could generate $500M-$1B from Apple deal annually by 2028. Apple remains committed to Taiwan Semiconductor for 80% of its production.

Intel eyes its foundry business as a revival path. IFS struggled with delays and losses, but Apple deal could mark a turning point, generating revenue. Apple’s move to use Intel’s 18A process for entry-level chips diversifies its supply chain and reduces geopolitical exposure.

Intel’s 18A process offers power efficiency gains over prior generations. Apple sees value in a U.S.-based alternative to reduce supply disruptions. Apple tested 18A samples earlier this year, with yields meeting internal benchmarks for low-end applications.

An Apple endorsement would validate Intel’s IFS, potentially generating revenue by 2028. Intel aims to reach foundry parity with Taiwan Semi by 2027 but faces challenges with yield rates. Apple’s support positions IFS for defense contracts and offsets risks.

Apple’s supply chain evolves with potential Intel deal, enhancing resilience and offering pricing leverage. Intel’s proximity could cut shipping times, challenging Taiwan Semi. Intel’s stock is up 8% on the rumor, but it needs to prove delivery capability.

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Read more at Yahoo Finance: Is Apple Giving Intel’s Foundry Ambitions a Much-Needed Boost?