May 8 (Reuters) – Apple and Intel have reached a preliminary agreement for Intel to manufacture some of the chips that power the iPhone maker’s devices, the Wall Street Journal reported on Friday, citing people familiar with the matter.
The companies had been engaged in intensive talks for more than a year, and they hammered out a formal deal in recent months, the report said.
Apple shares were up about 2%, while Intel’s stock extended gains and was last up about 14%.
The potential move could be a major win for Intel, which has been trying to revitalize its chip manufacturing business and become a serious player in the booming chipmaking industry.
Last month, Intel also partnered with Elon Musk’s Tesla and SpaceX to make processors for his Terafab project to power the billionaire’s AI and robotics ambitions.
It is unclear which Apple products Intel would make chips for, according to the report. The companies did not immediately respond to a Reuters request for comment.
Earlier this week, Bloomberg News reported that Apple had held exploratory discussions about using Intel and Samsung to produce main processors for its devices.
What does it mean for Intel’s chipmaking plant in Ohio?
It wasn’t immediately clear what the deal could mean for Intel’s long-delayed New Albany chipmaking facility.
Construction started on the site in 2022, with a target date to begin production in 2025. But that was pushed back to as Intel’s chipmaking business lagged. The first fabrication plant is now scheduled to be complete in 2030 and become operational by 2031. The second plant is to be completed in 2031 and be operational in 2032.
The company spent over $1.5 billion last year on the fabrication campus, bringing Intel’s total spend to $5.26 billion.
Reporting by Zaheer Kachwala in Bengaluru; Editing by Shinjini Ganguli
Dispatch reporter Dean Narciso contributed reporting.
This article originally appeared on The Columbus Dispatch: Intel, Apple strike chipmaking deal, WSJ reports
Reporting by Reuters, The Columbus Dispatch / The Columbus Dispatch
USA TODAY Network via Reuters Connect
