Apple Inc (NASDAQ:AAPL, XETRA:APC) and Intel Corp (NASDAQ:INTC, XETRA:INL) have reportedly reached a preliminary chipmaking agreement that Wedbush analysts see as “a clear positive for Intel,” while also raising questions about what it signals for Intel’s next-generation manufacturing roadmap.
The Wall Street Journal reported last week that Apple and Intel have reached a preliminary agreement under which Intel would manufacture some chips used in Apple devices.
Wedbush noted the deal would see Apple use Intel’s 18A node process and its Chandler, Arizona fab, although it said it remains “less clear exactly what devices and silicon would be supported by the new agreement.”
The firm said the development follows “substantial speculation that Apple might be leveraging Intel for certain silicon,” adding that while the agreement is positive for Intel, investors should focus on what it implies about the company’s manufacturing progress.
Wedbush wrote that its key question is “what exactly this news tells us about the state of Intel's next generation fab processes.”
It added that improved yields would also be positive for Intel’s future 14A process, while noting that “both tight fab availability and US policy goals, potentially playing into Apple’s decision.”
Separately, Wedbush cited ZDNET reporting that Hynix is testing Intel’s EMIB packaging technology due in part to limited availability of TSMC’s CoWoS capacity.
The firm said it views this as another positive sign for Intel’s packaging capabilities, while cautioning that “potential inroads in packaging are far less meaningful than the success of Intel’s efforts with its next generation fab processes.”
Shares of Intel traded up almost 3% at about $128 on Monday, while Apple shares were flat at about $292.