Core Viewpoint - Intel is on track to potentially become a major foundry customer for Apple, with significant improvements in visibility regarding its advanced node supplier status [1][4] Group 1: Apple and Intel Collaboration - Apple is expected to utilize Intel's 18A-P process for its lowest-end M-series processors, with shipments anticipated to start in the second quarter of 2027, and initial annual volumes projected between 15 million and 20 million chips [2] - The deal could be worth approximately $1 billion annually for Intel, as Apple currently pays TSMC around $45 for each A18 chip, with costs expected to rise for TSMC's next-generation nodes [3] Group 2: Intel's Foundry Business Challenges - Intel faces technical challenges in establishing a competitive foundry business, including achieving acceptable manufacturing yields and profit margins, as well as winning the trust of potential customers [4][5] - Intel's previous attempts to build a foundry business were unsuccessful, and the perception that it lacks foundry expertise remains a significant hurdle [5] Group 3: Strategic Implications for Apple - By bringing Intel in as a secondary supplier, Apple could reduce its dependence on TSMC, potentially lowering overall costs and gaining leverage in price negotiations [6] - If the collaboration proves successful, Apple may consider shifting more volume to Intel, further increasing the deal's value [6] Group 4: Future Prospects for Intel - Even if the Apple deal materializes, it will take several years for Intel Foundry to achieve profitability, necessitating additional customers for its 18A and upcoming 14A processes [7] - Intel has its own chips scheduled for release using the 18A process, which could enhance its appeal to potential foundry customers if they perform well [8] Group 5: Market Impact - Winning Apple as a foundry customer would be one of the most impactful developments for Intel, with significant revenue potential and the possibility of attracting additional customers [9]