Apple to use own chips in Macs from 2020, say sources

SAN FRANCISCO • Apple is planning to use its own chips in Mac computers beginning as early as 2020, replacing processors from Intel Corp, according to people familiar with the plans.

The initiative, code-named Kalamata, is still in the early developmental stages, but comes as part of a larger strategy to make all of Apple's devices - including Macs, iPhones and iPads - work more similarly and seamlessly together, said the people.

The project, which executives have approved, will likely result in a multi-step transition.

The shift would be a blow to Intel, whose partnership helped revive Apple's Mac success and linked the chipmaker to one of the leading brands in electronics. Apple provides Intel with about 5 per cent of its annual revenue, according to Bloomberg supply chain analysis.

Intel shares on Monday fell as much as 9.2 per cent, the biggest intra-day drop in more than two years, on the news.

For Apple, the change would be a defining moment. Intel chips remain some of the only major processor components designed by others inside Apple's product portfolio.

Currently, all iPhones, iPads, Apple Watches and Apple TVs use main processors designed by Apple and based on technology from Arm Holdings. Moving to its own chips inside Macs would let Apple release new models on its own timelines, instead of relying on Intel's processor road map.

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A version of this article appeared in the print edition of The Straits Times on April 04, 2018, with the headline 'Apple to use own chips in Macs from 2020, say sources'. Print Edition | Subscribe