Apple and Intel have reached a preliminary agreement for Intel to manufacture some of the chips that power Apple's devices, according to a report in the Wall Street Journal. The companies had been negotiating for over a year and finalized the deal in recent months.
Apple shares rose about 2%, while Intel shares surged approximately 14% on the news.
The deal represents a major win for Intel as it seeks to revitalize its chip manufacturing business and compete in the booming chipmaking industry. Last month, Intel also partnered with Tesla and SpaceX to produce processors for Elon Musk's Terafab project.
It remains unclear which Apple products will use Intel-made chips. Neither company immediately commented on the report.