Highlights
- Analyst Ming-Chi Kuo reports Intel may start shipping Apple’s low-end M-series processors by 2027.
- The M7 Chip is expected to be powering MacBook Air, iPads and possibly a cheaper Vision Pro.
- Apple diversifies beyond TSMC, aligning with the “Made in USA” policy.
Caption – (Photo by Junseong Lee on Unsplash)
Intel is reportedly gearing up to supply Apple with its lowest-end M-series processors as early as the second or third quarter of 2027. The update comes from TF International Securities analyst Ming-Chi Kuo, who shared the details in his latest note on X (formerly Twitter).
These entry-level M chips power devices like the MacBook Air and iPad Pro. Kuo estimates that combined shipments for these products will reach around 20 million units in 2025. For 2026 and 2027, shipment volumes are expected to fall between 15 million and 20 million units, as Apple prepares to introduce a more affordable MacBook powered by an iPhone-class processor.
According to Kuo, the standard M7 chip could be manufactured on Intel’s 18A process. The M7 chip is expected to appear in future MacBook Air models, upcoming iPads, and possibly a lower-cost Vision Pro. Intel is reportedly branding Apple’s version as “18AP.” However, mass production is unlikely to begin before 2027, meaning it will take a few more years before the results become visible.
Until now, Apple’s custom silicon has been exclusively manufactured by Taiwan Semiconductor Manufacturing (TSMC). Apple contributes over 25% of TSMC’s revenue.
In a post on X, Kuo said that while the shipment volume is relatively modest and won’t significantly impact TSMC’s revenue or leadership position, the development is meaningful for both Apple and Intel. TSMC’s stock saw a slight 0.3% increase in morning trading on Friday, with retail sentiment staying in “neutral” territory.
Intel’s stock, meanwhile, surged more than 7% during morning trade, as retail sentiment improved from “bearish” to “neutral.” Apple’s shares dipped 0.3%, but investor sentiment for the company also shifted to “neutral” from “bearish.”
Apple’s securing Intel as a manufacturing partner aligns with the Trump administration’s “Made in USA” policy. It also helps diversify its supply chain beyond TSMC, reducing risks tied to dependence on a single supplier.
Meanwhile, the agreement represents more than short-term revenue for Intel. Kuo believes that taking on Apple’s advanced-node orders could bolster Intel Foundry Services (IFS) in the long run. While Intel still trails TSMC in cutting-edge semiconductor technology, its upcoming nodes like 14A may draw more orders from Apple and other top-tier companies in the future, strengthening Intel’s long-term prospects.
FAQs
Q1. When will Intel start supplying Apple’s low-end M-series chips?
Answer. Analyst Ming-Chi Kuo suggests Intel may begin shipping them in the second or third quarter of 2027.
Q2. Which Apple devices will use these entry-level M chips?
Answer. They power products like the MacBook Air, iPad Pro, and potentially a lower-cost Vision Pro.
Q3. Why is Apple partnering with Intel for chip production?
Answer. To diversify beyond TSMC, align with “Made in USA” policy, and reduce reliance on a single supplier.