Market Trends & Industry Dynamics - Intel is projected to begin shipping Apple's lowest-end M-series processors as early as 2Q-3Q27, utilizing the 18AP advanced process [1] - Apple's plan hinges on the progress after obtaining PDK 1.0/1.1, expected from Intel in 1Q26 [1] - The lowest-end M-series chips are primarily used in MacBook Air and iPad Pro, with a combined shipment volume of approximately 20 million units in 2025 [1] - Expected shipments of the lowest-end M-series processors are projected to be between 15 million and 20 million units in both 2026 and 2027, potentially influenced by a new lower-priced MacBook equipped with an iPhone processor in 2026 [1] Strategic Implications & Supply Chain - Apple aims to diversify its supply chain by seeking a second supplier, aligning with the "Made in America" initiative, while still heavily relying on TSMC's advanced processes [2] - Securing Apple's advanced process orders holds significant symbolic value for Intel, outweighing the actual revenue and profit contribution [2] - This order signifies that the worst may be over for Intel's IFS business, potentially leading to more orders from Apple and other major clients for future 14A or more advanced processes, improving long-term prospects [2] - The order for the lowest-end M-series processors is not expected to impact TSMC's fundamentals or its leading position in the coming years [2]

Industry Outlook - Intel is projected to begin shipping Apple's lowest-end M processors as early as 2Q-3Q27, utilizing the 18AP advanced process [1] - The actual timeline depends on the development progress after obtaining PDK 1.0/1.1, expected to be released by Intel in 1Q26 [1] - The lowest-end M chips are primarily used in MacBook Air and iPad Pro, with a combined shipment volume of approximately 20 million units in 2025 [1] - Due to potential impact from new low-cost MacBooks with iPhone processors, the projected shipment volume for the lowest-end M processors in 2026 and 2027 is estimated to be between 15 million and 20 million units [1] Strategic Implications - The order for the lowest-end M processors has no impact on TSMC's fundamentals and leading advantage in the coming years [2] - For Apple, this move supports the "Made in America" policy and diversifies its supply chain, reducing reliance on TSMC [2] - For Intel, securing Apple's advanced process order is more significant than the actual revenue and profit contribution, signaling a positive turn for its IFS business [2] - This order suggests that Intel's 14A or more advanced processes may attract more orders from Apple and other major clients, improving its long-term prospects [2]