Apple and Intel reach preliminary chip manufacturing agreement, WSJ reports

Apple and Intel have reached a preliminary agreement for Intel to manufacture some of the chips used in Apple devices, The Wall Street Journal reported on Friday, citing people familiar with the matter.

The companies have been in talks for more than a year and finalized a formal deal in recent months, according to the report. It was not immediately clear which Apple products would use chips made by Intel.

The potential arrangement would mark a win for Intel as it works to revive its chip manufacturing business and expand its role in chipmaking.

Apple shares were up about 2% following the report, while Intel’s stock extended gains and was last up about 14%. The companies did not immediately respond to a request for comment.

Earlier reports said Apple had held exploratory discussions with Intel and Samsung about producing main processors for its devices.