Apple May Tap Intel for ‘Made in USA’ M7 Chips
Apple explores U.S. manufacturing for entry-level M7 processor in strategic shift
It may seem ironic: after famously parting ways with Intel to pioneer its own Apple Silicon—a move that redefined the Mac—Apple is now reportedly considering a return to Intel, but in a different capacity. This isn’t a step backward toward old technology or past limitations; instead, it reflects a strategic advance in manufacturing strategy, with Apple looking to leverage Intel’s capabilities to strengthen its supply chain.
According to new supply chain insights, Apple is actively considering a partnership to manufacture its entry-level M7 chips at Intel’s U.S. foundries by 2027. This potential agreement marks a significant shift in Apple’s production strategy, moving away from complete reliance on TSMC and taking a major step toward realizing the long-promised “Made in America” Mac.
Here’s a closer look at what this potential partnership means for Apple, the motivations behind the timing, and the broader political context shaping these decisions.
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The Reunion: Manufacturing, Not Architecture
To understand this move, it’s important to distinguish chip design from chip manufacturing. Since 2020, Apple has designed its own processors—based on ARM architecture—but has relied exclusively on TSMC (Taiwan Semiconductor Manufacturing Company) to fabricate them. TSMC is widely regarded as the industry leader in advanced chip manufacturing and lithography.
A new report from supply chain analyst Ming-Chi Kuo reveals that Apple has signed an NDA with Intel to evaluate its foundry services. Importantly, this move is not about returning to Intel’s x86 architecture—Apple has moved beyond that. Instead, Apple plans to leverage Intel’s factories, particularly their upcoming “18AP” process node, to manufacture its custom-designed chips.
What We Know So Far
The Target: The partnership focuses specifically on the entry-level M7 chips. The high-performance Pro, Max, and Ultra variants would likely remain with TSMC for the foreseeable future.
The Timeline: Production is eyeing a mid-2027 start date.
The Location: These chips would be manufactured in Intel’s U.S.-based facilities, marking a significant onshore shift for Apple’s core components.
Early simulations and research projects have reportedly yielded positive results, indicating that Intel’s foundry division is closing the gap and meeting the high standards Apple requires.
Why Pivot Now? The Strategic Diversification
For years, Apple has relied exclusively on TSMC to manufacture every chip in its portfolio—from the A-series processors in your iPhone to the powerhouse M-series chips in Mac Studio. While TSMC remains a world-class partner, this single-source approach introduces risk: any disruption to TSMC’s operations could create serious bottlenecks and a single point of failure in Apple’s supply chain.
The Pandemic Lesson
The COVID-19 pandemic delivered a stark reminder of how vulnerable global supply chains can be. Factory shutdowns and disrupted shipping lanes exposed the risks of relying on a single region or supplier. By bringing Intel into the fold, Apple is proactively diversifying its supply chain. Should geopolitical tensions or natural disasters disrupt production in Taiwan, Apple would have a domestic manufacturing backup ready to keep operations moving.
Capacity Constraints
Demand for advanced silicon is rapidly increasing. The AI boom has intensified competition for TSMC’s wafer capacity, with industry giants like NVIDIA contending for available production space. Although Apple is a major client, even it faces pressure to secure manufacturing slots. By shifting the high-volume, entry-level M7 chip production to Intel, Apple frees up TSMC’s resources for the more complex, lower-volume Pro and Max chips. This move streamlines the supply chain and enhances overall efficiency.
The Political Chess Game
Beyond logistics, a notable political dimension shapes this rumored deal. Relocating chip production to the United States aligns closely with the economic objectives of the incoming administration.
President Donald Trump has repeatedly urged major tech companies to return manufacturing jobs to the United States, with Apple frequently at the center of these calls. By planning to produce the critical Mac processor in American foundries, Apple bolsters its political standing and demonstrates a tangible commitment to supporting domestic industry.
Tariff Avoidance: With economic uncertainty and potential tariffs looming over global trade, having a domestic supply chain for core components provides a safety net.
Preferential Treatment: Appeasing the administration could shield Apple from other regulatory scrutiny or earn them favorable treatment in trade negotiations.
Kuo points to this political factor as a primary motivator for Apple’s move. By manufacturing chips in the U.S., Apple positions itself as a leader in American manufacturing while also addressing critical supply chain vulnerabilities.
What This Means for the User
For most Mac and iPad users, this transition will be virtually unnoticeable—and that’s intentional. Apple’s “Apple Silicon” brand stands for performance and efficiency, and the company is unlikely to risk that reputation by partnering with a foundry unable to meet its exacting standards.
If the deal moves forward, an M7 MacBook Air purchased in 2027 could feature a chip proudly marked “Made in USA,” yet users can expect the same signature speed, responsiveness, and battery life they’ve come to rely on. For Apple, the goal isn’t to alter the user experience—it’s to ensure the product’s future is built on a stronger, more resilient foundation.
This potential partnership represents a pragmatic and forward-thinking move for Apple. While the company maintains full control over chip design, it recognizes the importance of a resilient, diversified, and globally astute manufacturing network to bring those designs to life. If Intel meets Apple’s high standards, the M7 era could signal the beginning of a true American semiconductor renaissance for Apple.
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Really smart take on why Apple's Intel partnership isn't a step backward. The distinction between chip design and manufactruing is something most people miss, and you nailed it. What's intresting though is how this move basically forces Intel to prove its foundry services can compete at TSMC's level, which could reshape the entire fab industry if they pull it off. The geopolitical timing couldn't be better for both companies.