Shares of Intel Corp. closed 10% higher today following a report that it might win a contract to provide chips for Apple Inc. devices.
Outstanding Apple analyst Ming-chi Kuo wrote on X that reports of the potential deal have been swirling within the semiconductor industry for a while. “Visibility around this had remained low,” Kuo wrote. “My latest industry surveys, nonetheless, indicate that visibility on Intel becoming an advanced-node supplier to Apple has recently improved significantly.”
The iPhone maker is predicted to entrust Intel with the production of its M system-on-chip series. The processors power the iPad Pro and entry-level MacBook Air. The most recent chip within the series, the M5, features a central processing unit and a graphics processing unit that each contain 10 cores.
Intel is predicted to begin making chips for Apple as soon because the second quarter of 2027. The corporate will reportedly use its cutting-edge Intel 18A manufacturing process, which entered mass production earlier this 12 months.
A processor includes not only transistors but in addition other kinds of circuits, notably capacitors. Those are tiny electric components that may store energy for a limited period of time. Chips use them for tasks reminiscent of mitigating power fluctuations which will interfere with processing.
Intel’s 18A node introduces a brand new capacitor design the corporate calls Omni MIM. Each Omni MIM capacitor comprises a skinny layer of insulating, or nonconductive, material sandwiched between two layers of metal. Intel says that the technology mitigates voltage fluctuations more effectively than its earlier circuit designs.
The 18A node further reduces unwanted voltage changes using a technology called PowerVia. Processors include a posh network of microscopic wires that deliver electricity to their transistors. PowerVia places those wires below the transistors, a departure from the standard approach of stacking them atop a chip.
In line with Kuo, Intel has provided Apple with a so-called PDK for 18A. A PDK is a group of tools that engineers can use to optimize their chip designs for a brand new manufacturing process. It’s believed that the research work Apple has carried out with the PDK to this point met its expectations.
The iPhone maker is believed to be using a variant of 18A called 18-A. In line with Intel, it provides higher power efficiency than the usual version.
A contract with Apple could provide a significant boost for the chipmaker’s struggling foundry business, which has weighted down on its earnings in recent quarters. Kuo stated that the iPhone maker shipped 20 million devices equipped with M chips this 12 months. It’s expected to sell between 15 million and 20 million units in 2027, the 12 months Intel is predicted to begin producing the processor series.
Photo: Intel
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