The Apple Intel foundry deal marks the biggest shift in Apple’s chip strategy in years. Apple and Intel have reached a preliminary agreement for Intel to manufacture some Apple Silicon processors, with full production targeted for late 2027. For MacBook buyers and IT professionals in Pakistan, this deal could quietly reshape the laptops you buy and the prices you pay in the years ahead.
What Is the Apple Intel Foundry Deal?
Intel Foundry is Intel’s contract chip-making business, where it manufactures chips for other companies. For years, Apple has relied almost exclusively on TSMC (Taiwan Semiconductor Manufacturing Company) to make all of its advanced chips. That is now changing.
The Wall Street Journal first reported the preliminary Apple Intel foundry deal in May 2026, after more than a year of talks between the two companies. On June 18, 2026, US President Donald Trump publicly confirmed the partnership, saying Apple had agreed to work with Intel to design and build chips domestically in the United States. Intel’s stock hit an all-time high of $135.32 that same day, surging over 10% on the news.
Neither Apple nor Intel has released full official details. When contacted by industry press, Intel said it was unable to answer questions at the time. Apple did not comment. So while the deal is widely reported and confirmed at a political level, the finer details are still emerging.
Which Apple Chips Will Intel Make?
According to reports and supply chain analyst Ming-Chi Kuo, Intel will manufacture Apple’s entry-level M-series processor, not the high-end Pro or Max chips. The M7 chip, which is expected to power the 2027-28 refresh of the MacBook Air, iMac, and base iPad models, is said to be the first high-volume chip to use Intel’s 18A-P manufacturing process.
The 18A-P is an enhanced version of Intel’s 18A node. It is aimed at external foundry customers and promises strong performance and power efficiency. Intel disclosed in June 2026 that this node has entered risk production, a key step before full-scale manufacturing begins.
Kuo estimates Apple could send 15 to 20 million low-end M-series chips per year to Intel. That is a large volume. These chips power millions of MacBook Air and entry-level iPad units around the world.
Importantly, TSMC is not going anywhere. Apple’s high-end chips, including the M-series Pro and Max variants that power the MacBook Pro and Mac Studio, are expected to stay with TSMC for the foreseeable future. The Intel deal is a supplemental arrangement, not a full replacement.
Why Is Apple Doing This?
There are three clear reasons.
- Supply chain safety: Apple has relied on TSMC in Taiwan for almost all of its advanced chip production. With rising geopolitical tensions around Taiwan and growing demand from Nvidia and AMD for TSMC capacity, Apple wants a second option. Adding Intel as a manufacturing partner reduces risk and gives Apple more bargaining power.
- US government pressure: The Trump administration has actively pushed major US tech companies to manufacture chips on American soil. Intel’s factories are in Oregon, Ohio, Arizona, and Nevada. This deal lets Apple show support for domestic chip-making policy.
- Intel’s improving technology: Intel’s foundry has been rebuilding credibility under CEO Lip-Bu Tan. Landing Apple as a customer, even for lower-end chips, is a huge vote of confidence in Intel’s 18A-P process. Intel’s foundry business is on track to break even in 2027.
The Apple Intel Foundry Deal and What It Means for MacBook Buyers
This is where Pakistani MacBook users should pay attention. The deal targets entry-level chips first, so the MacBook Air and base iPad are the devices most likely to carry Intel-made Apple Silicon from late 2027 onwards.
Will prices drop? Not right away. Apple CEO Tim Cook has already warned that device prices may rise because of higher memory and storage chip costs. Any savings from having a second foundry are unlikely to reach consumers before 2028 at the earliest. For Pakistani buyers, who already pay a premium for Apple devices because of import duties and a weak rupee, short-term price relief from this deal is not expected.
However, the bigger picture is positive. A more diversified Apple supply chain means fewer risks of stock shortages. When TSMC faces any disruption, Apple today has very few fallback options. From 2028 onward, that could change. More stable supply generally means more consistent availability in markets like Pakistan.
Pakistani IT professionals and freelancers who rely on MacBooks for software development, design, or content work should also note that the M7 chip in future MacBook Airs will still be Apple Silicon. The performance and software ecosystem will not change. Only who builds the chip changes. Pakistan’s IT sector has been growing fast, and tools like the record IT exports Pakistan is now achieving depend heavily on professionals using powerful laptops like the MacBook. Any development that keeps Apple hardware available and competitive globally benefits this community directly.
A New Era for the Chip Industry
Beyond Apple and Intel, this deal signals something bigger. For decades, TSMC has been the undisputed king of advanced chip manufacturing. Now major US tech firms including Amazon, Microsoft, Tesla, and Google have also signed foundry deals with Intel. The chip industry is starting to look less like a one-supplier world and more like a competitive market with multiple serious players.
For consumers everywhere, including in Pakistan, more competition in chip manufacturing is generally a good thing. It can lead to better supply, more innovation, and eventually, better value in the devices we buy.
Learn more about Intel’s foundry strategy directly from Intel Foundry’s official page.
Frequently Asked Questions
What is the Apple Intel foundry deal?
It is a preliminary agreement where Intel will manufacture some of Apple’s chips, specifically lower-end M-series processors, at Intel’s US-based foundry facilities. The deal was first reported in May 2026 and publicly confirmed by President Trump on June 18, 2026.
Which MacBooks will use Intel-made chips?
Reports point to the entry-level MacBook Air and base iPad models. The M7 chip, expected in the 2027-28 product refresh, is said to be the first Apple chip built on Intel’s 18A-P process. High-end MacBook Pro chips will still come from TSMC.
Will MacBook prices go up or down because of this?
Prices are unlikely to fall soon. Apple’s CEO has warned about rising costs from memory and storage chips. The Intel partnership is a long-term supply chain move, and any cost benefits are not expected to reach consumers before 2028 at the earliest.
Does this affect MacBook performance or software?
No. The chip will still be Apple’s own M-series design. Only the factory making it changes. All macOS software, apps, and features will work exactly the same. Performance is expected to remain in line with Apple’s usual standards for that chip tier.