Apple and Intel Chip Deal Could Spark 4.6 Billion Euro Equipment Market, BofA Expects ASML to Benefit

Apple and Intel have reportedly signed a chip manufacturing contract worth up to $10 billion, according to unconfirmed media reports. The Wall Street Journal indicated a preliminary agreement, but details remain unclear.

BofA estimates equipment orders

Bank of America estimates that if the deal includes iPhone chips, Intel may order up to 4.6 billion euros worth of equipment from ASML, a Dutch lithography tool maker. Intel could also order up to 182 hybrid bonding tools from BE Semiconductor if iPhone chips are part of the deal. Without the iPhone, Intel's order for hybrid bonding tools may be only 15 units.

The potential deal would significantly boost demand for semiconductor manufacturing equipment, particularly from ASML and BE Semiconductor. The equipment orders would support Intel's foundry expansion plans.

Intel has not confirmed the contract or the equipment orders. The scope of the deal, including whether it covers iPhone chips, remains unconfirmed.