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Apple may outsource M7 chip production to Intel

Apple may outsource M7 chip production to Intel

What would have recently seemed like an industry joke is slowly becoming a reality: according to reports from analyst Ming-Chi Kuo, Apple is considering outsourcing the production of its M7 base chip to Intel — bypassing TSMC entirely for that model.

We’re talking about the standard version of the M7, which would likely be used in future MacBook Airs, iPads and possibly the more affordable Vision Pro. The processor is expected to be made using Intel’s 18A process, with the Apple-specific variant called «18AP». Mass production isn’t expected until 2027, so the first devices using the chip won’t be available for a while.

The more powerful versions —M7 Pro and M7 Max — should still be made at TSMC’s facilities, using its upcoming N2P or improved A18 process technologies. Essentially, Apple is spreading the load among manufacturers, but entrusting the most technologically advanced models to its most trusted partner.

If the plans materialize, the base M7 could be a showcase for Intel’s attempt to regain a foothold in the contract manufacturing segment. A successful partnership with Apple could attract other customers to Intel — such as Qualcomm, which is also looking for an alternative to TSMC.

A successful partnership with Apple could also attract other customers — such as Qualcomm, which is also looking for an alternative to TSMC.

The move looks strategic for Apple: producing millions of low-cost Macs and iPads requires huge production capacity. By outsourcing that portion of its orders to Intel, the company will allow TSMC to focus on premium solutions while also gaining a second supplier that could eventually become a real alternative.

Apple’s move seems strategic, as the production of millions of low-cost Macs and iPads requires a huge amount of manufacturing capacity.

It will be easier to see how competitive Intel’s 18A process is next year, when the first Panther Lake laptops appear. But the fact that Apple is considering entrusting Intel with real-world products —is already quite telling, given the history of their relationship.

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