Intel has begun production testing for Apple chips using its 18A-P process, marking a revival of the companies' decades-old partnership. The testing focuses on older chipsets needed for Apple's budget product lines, including potential processors for low-end iPhones and future Apple TV devices. Supply chain analyst Ming-Chi Kuo indicates this represents a strategic shift back toward Intel manufacturing.

The testing roadmap extends through 2029, with Kuo projecting 2026 for testing ramp-up and 2027 as the target for mass shipment. However, Intel's initial output will only reach 50-60% capacity in 2027, with production peaking in 2028 before declining through 2029. Approximately 80% of the Intel order consists of iPhone chips, primarily older-generation processors that Apple will need for entry-level devices in its lineup.

This partnership stems from political pressure on Apple to diversify chip manufacturing away from Taiwan, where TSMC produces over 90% of Apple's processors. The Trump administration's 10% stake in Intel and broader push for domestic manufacturing creates incentives for Apple to shift some production stateside. While TSMC remains the dominant supplier, this Intel deal provides a political hedge that satisfies domestic manufacturing expectations while maintaining supply chain flexibility for legacy processors.