Intel (INTC.US) shares surged more than 10% on Friday after renowned Apple analyst Ming-Chi Kuo suggested the chipmaker could become an advanced-node foundry supplier for some of Apple's (AAPL.US) M-series processors, marking a significant positive development for the semiconductor giant.

Kuo, often referred to as the "most accurate Apple analyst," stated in a post on social media platform X that recent supply chain checks indicate Intel's likelihood of becoming Apple's advanced-node supplier has increased substantially. Apple has already signed a non-disclosure agreement (NDA) with Intel and obtained the PDK 0.9.1GA (Process Design Kit) for Intel's 18AP advanced node. Key simulation and R&D projects are progressing as expected.

Apple is awaiting Intel's planned release of PDK 1.0/1.1 in Q1 2026. If development proceeds smoothly, Apple intends to have Intel begin manufacturing its lowest-end M-series processors using the 18AP node as early as Q2-Q3 2027. However, the final mass production timeline will depend on post-PDK 1.0/1.1 development progress.

Currently, the lowest-end M-series chips are primarily used in MacBook Air and iPad Pro models, with estimated combined shipments of around 20 million units this year.

Kuo highlighted that the potential collaboration holds strategic significance for both Apple and Intel. For Apple, it would demonstrate strong support for the U.S. government's "Made in America" policy. For Intel, securing Apple's advanced-node orders would carry far greater importance than just direct revenue and profit contributions.

"While Intel will still struggle to compete with TSMC in advanced nodes in the coming years, this development suggests the worst may be over for Intel's foundry business," Kuo noted. "Looking ahead, Intel’s 14A and more advanced nodes could attract more orders from Apple and other leading tech firms, turning Intel’s long-term outlook increasingly positive."