Podcast Episode
The news sent Intel shares climbing nearly five percent in Monday morning trading, offering a glimmer of hope for a company that has struggled to compete with Taiwan Semiconductor Manufacturing Company in recent years.
Nvidia's interest appears more limited in scope. The graphics chip giant is considering Intel for input-output dies and up to twenty-five percent of advanced packaging for its 2028 Feynman GPU architecture, while keeping the critical compute dies at TSMC.
Nvidia has reportedly overtaken Apple as TSMC's largest customer, driven by explosive demand for AI accelerators. This shift means Apple no longer enjoys the preferential access to leading-edge capacity it held for over a decade.
While MacBooks and iPads with active cooling could potentially handle the thermal challenges, the strict thermal requirements of iPhones may render the technology unfeasible for those devices.
Intel Emerges as Potential Lifeline for Apple and Nvidia Amid Global Chip Crunch
February 3, 2026
Audio archived. Episodes older than 60 days are removed to save server storage. Story details remain below.
Intel shares jumped nearly five percent following reports that Apple and Nvidia are in early discussions to use Intel's foundry services for chip production beginning around 2028. The talks come as TSMC faces unprecedented capacity constraints driven by surging AI demand.
Intel Re-enters the Foundry Race
In a development that could reshape the semiconductor landscape, both Apple and Nvidia are reportedly in early-stage discussions to manufacture chips at Intel's American foundries, with production potentially beginning in 2028.The news sent Intel shares climbing nearly five percent in Monday morning trading, offering a glimmer of hope for a company that has struggled to compete with Taiwan Semiconductor Manufacturing Company in recent years.
What Each Company Wants
Apple is exploring Intel's 18A and upcoming 14A process nodes for entry-level M-series chips destined for MacBooks and iPads, with potential production beginning as early as mid-2027. The company is also reportedly evaluating Intel for non-Pro iPhone models starting in 2028.Nvidia's interest appears more limited in scope. The graphics chip giant is considering Intel for input-output dies and up to twenty-five percent of advanced packaging for its 2028 Feynman GPU architecture, while keeping the critical compute dies at TSMC.
The Driving Force Behind the Talks
The discussions come amid mounting pressure on TSMC's advanced manufacturing capacity. During Apple's recent earnings call, CEO Tim Cook acknowledged the company is in supply chase mode, unable to meet surging iPhone demand due to constraints at the advanced nodes where Apple's chips are produced.Nvidia has reportedly overtaken Apple as TSMC's largest customer, driven by explosive demand for AI accelerators. This shift means Apple no longer enjoys the preferential access to leading-edge capacity it held for over a decade.
Technical Hurdles Remain
Despite the optimistic headlines, technical experts have raised serious concerns about Intel fabricating iPhone chips specifically. Intel's mandatory use of PowerVia backside power delivery technology in its advanced nodes creates localised heat concentrations that analysts say would be impossible to manage in passively cooled smartphones.While MacBooks and iPads with active cooling could potentially handle the thermal challenges, the strict thermal requirements of iPhones may render the technology unfeasible for those devices.
A Long Road Ahead
Any foundry commitments from Apple or Nvidia remain years away and contingent on Intel demonstrating improved yields and delivery timelines. Intel faces ongoing scepticism from analysts, with the stock carrying a consensus Reduce rating. The next few years will determine whether Intel can truly challenge TSMC's dominance in leading-edge chip manufacturing.Published February 3, 2026 at 2:25am
