Your next Mac might have a processor made by Intel. That’s a surprise after Apple dropped the chip maker in favor of TSMC. But there’s a standout reason why Apple needs Intel, and it might not be what you think.
Apple and Intel: A rekindled relationship
Starting in 2005, Intel supplied the processors that powered every Mac, giving Apple access to industry-leading x86 performance while Apple focused on design and software. The partnership ended in 2020 when the Mac lineup transitioned to Apple silicon chips, with the Mac maker citing efficiency and performance advantages. These processors are designed by Apple and produced by TSMC.
Much of the Apple/Intel breakup can be laid at Intel’s door. It repeatedly missed deadlines shifting from 14nm and then 10nm process nodes. The company was simply slower to innovate for many years, depending instead on its historical industry dominance to compete.
But Apple is now reportedly returning to Intel. To be clear, that doesn’t mean future Macs will include Intel Core processors. Instead, the U.S. chip maker might fabricate M-series Apple silicon. It will essentially take on some of the foundry role that TSMC currently holds.
Why Apple is returning to Intel
If this unconfirmed report pans out, Apple’s move will undoubtedly please U.S. President Donald Trump. His administration arranged to acquire a roughly 10% equity stake in Intel, and Trump backs the chip maker as a “vital American company.”
But that’s not the primary reason for the change. It’s about Apple’s over-dependence on TSMC.
The partnership between the Mac maker and the Taiwanese foundry works brilliantly for both companies. Apple gets the most advanced processors while TSMC gets billions of dollars. Apple is TSMC’s largest customer, making up about 25% of its total revenue.
Nevertheless, an important part of Apple’s strategy when sourcing components for Mac, iPhone, etc. is to not depend on a single supplier. Breaking that rule is TSMC, the sole supplier of CPUs for all Apple’s computers. That’s by necessity — it’s the only company with the technology to make Apple’s most advanced chips.
But Intel is finally getting itself together. It’s promising to have the tech needed to make low-end M-series processors in 2027.
Apple’s over-dependence on TSMC
Adding Intel to its supplier list would mean Apple would no longer be 100% dependent on TSMC chips. That will undoubtedly affect negotiations on how much Apple must pay for TSMC processors. As it stands now, Apple can’t threaten to take its business elsewhere if TSMC charges too much — there’s nowhere else to go.
Plus, any problem for TSMC is inescapably a problem for Apple, too. If the foundries in Taiwan are hit with a natural disaster, Apple has no alternative source of chips, for example.
And don’t forget that Trump threatened computer makers with a 100% tariff on chips and semiconductors imported into the United States. That hefty import tax remains in limbo, but the threat hangs over TSMC. If worse comes to worst, Intel chips made in the U.S. could be Apple’s salvation.
In short, Apple’s over-dependence on another company — even one as skilled as TSMC — is bad business. It needs an alternative source of CPUs, and Intel seems perfect for that role. Assuming it can fulfill its promises, of course.
No matter what happens with Apple/Intel, don’t worry about TSMC — it’s got more companies knocking on its door than it can handle. Most notably, the foundry might produce enough chips for NVIDIA this year to match the revenue currently coming from Apple.