Apple will gain increasingly needed diversification.
US supply chain gets a boost.
Should be fine for TSMC in the short to medium term. Apple not going to risk actual mainline iPhone SoC on Intel any time soon, so lion share of TSMC Apple revenue will be fine.
It's not really realistic to make Mac, Watch, iPad chips on TSMC's best nodes in the next 3-4 years - assuming there is no collapse in AI.
Not to mention that Intel does not and will not any time in the next decade have the capacity for a product of that quantity.
It is probably a second source deal for a popular chip or a support chip in an older process node like a power converter.
Isn’t running a fab only while it makes top of the line chips a bad idea because you can still make good money from it in later years?
If so, I think they, _if_ they ever want to own a fab (unlikely, IMO), they’ll want to accept outside customers for it when it has stopped being best-in-the-world.
Honestly, I found it hard to understand why they abandoned RAM and solid state memory fab sectors too. With all the national security spending by DoD, DoE, etc., I would have thought there is room for some US-based business to remain, even if some of the mass consumer stuff has been lost to low margin international competitors.
That alone is a strong reason for Apple to show up. Apple has some pretty wild patents on chiplet System-on-Chip designs! https://bsky.app/profile/ogawa-tadashi.bsky.social/post/3mi7...
Is this maybe a way to expand the affordable neo line?
The government (both current and previous administrations) is doing everything it can to make sure they do keep up, at the very least. And with enough money being thrown at it, they probably will.
Nobody benefits if just one company controls the state of the art in chip manufacturing, and Intel is one of maybe two other companies positioned to have a chance at competing effectively with TSMC.
What IMO is a bad strategy is the aversion to nationalization that exists in the USA. They buy billions worth of shares in key companies to inject capital during times of crisis, to later divest and refuse to be a player in industry.
China's model is much more complex. There's state-owned companies, companies where the state is a major stake-holder, and private companies too. It seems to afford them more tools to push and steer industries as they see important.
The USA is no stranger to this at smaller scales; airports are state run (at the municipal or state level). This rids them of the burden of profit, and allows them to be strategically use for the broader benefit when it makes sense.
Some are profitable; state-run doesn't necessarily mean unprofitable. But some can written off as infrastructure investments that don't make money but make other industries in the region competitive. At some point this makes sense if you want to keep pushing forward; let's stop worrying too much about making money on X, because if X is a widely-available commodity, we can instead make money on Y and Z.
I see it in Mexico too. Mexico's private healthcare is affordable and good because it has huge state-run healthcare system to compete with. State-provided healthcare isn't the best or fastest healthcare you can get, but it is free. This certainly puts competitive pressure on private healthcare companies, and in a way gives the Mexican government the best regulatory tool: the market itself. The Mexican government isn't trying to destroy private health, but via the state health enterprise it gains tools to steer and push the health industry in ways it may deem important.
Looking at the state of EVs and the car industry, I think it's clear whatever the Chinese government did to incentivize EV innovation was more effective than the federal incentives the USA government provided. At one point the USA government had a 60% stake in General Motors [1]; meaning it was nationalized, before being privatized again by 2013.
I just wonder what the USA could've done with that machinery; could they have offered a cheap EV, even if it's low quality, to push adoption, competitive pressure and get supply chains going? Could they have further commoditized certain parts to lower costs? Could they have strategically opened factories in certain locations to lower the risk and investment cost of future companies, and this way get the ball rolling on creating new auto-industry regions? We will never know, but we do know the USA's auto industry is now on the defense playing catch-up to China, and there seems to be little the USA government can do except placing tariffs and offering subsidies.
[1]: https://www.cnbc.com/2013/12/09/government-sells-the-last-of...
Also, the NEO line uses cutting edge technology that is necessary for the iPhone SOC, so this is probably for other chips.
It was only 9 months ago [0] that almost everyone here was bearish (not me [1]). Now it is the opposite.
Next we will here some folks wishing they should have joined Intel when it was $20 a share.
Another way to look at it. TSMC profit in 2025 was equivalent to Intel revenue (both about $55B), but Intel made zero dollars profit, yet somehow their market cap is now half of TSMCs.
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For what it's worth, Reader Mode in Firefox displays the article text anyway.
Ah, so this wasn't a decision Apple freely made based on technical merits. Instead it sounds more like big government and a fancy stock manipulation scheme.
My guess, Apple drags their feet for a couple years and bails after Trump leaves office(or is significantly weakened after the midterms).
What's wrong with US gov caring about supply chain and manufacturing capability of the most needed technology right there - on American soil?
It is in US' interest to be able to produce such complex tech locally
A compromised supply chain is a huge intelligence/national security risk, not just for military platforms but everything from government and commercial datacenters to personal devices used by both public and private sector individuals.
This wouldn't be Apple's first rodeo with Intel. They know how prior partnerships soured. Could a sufficiently powerful shareholder, like the US government, help mitigate Apple's concerns about the outcome of a new partnership? I.e. that Intel would be pressured to honor certain strategic obligations, even if the leadership at Intel isn't so keen?
Sure, supply chain redundancy is good, but that wasn't enough to get AAPL interested before.