It has long been reported that Apple is working on its own chips that it will use for its Mac computers, replacing chip supplier Intel in the process. Intel has long supplied the processors for Apple’s Mac lineup but if a new report is to be believed, Apple could replace the company’s chips for Mac devices with its own as early as 2020.

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Citing people familiar with the plans, Bloomberg reports that Apple is planning to use its own chips in Macs by 2020. The initiative is said to be in early stages of development but is said to be part of the company’s broader vision to make all of its devices including Macs and iOS devices work together more seamlessly.

As you can probably imagine, Intel’s shares took a hit after this report surfaced, declining as much as 9.2 percent. A Bloomberg supply chain survey reveals that Apple accounts for almost 5 percent of Intel’s entire revenue. The report does caution that Apple could theoretically abandon or delay the shift from Intel.

One major advantage of shifting to its own chips would be that Apple will then be able to launch new Macs on its own timelines instead of having to wait on Intel’s processor roadmap. It won’t have to pay Intel for the chips as well which is certainly going to be an added benefit.

The scribe notes that this is likely going to be a multi-step transition which means that Apple’s high-end machines such as the iMac Pro and Mac Pro will stick with Intel processors until Apple is able to produce chips that can rival or even best them in the performance department.

Apple hasn’t commented on the report as yet.

Filed in Apple. Read more about Intel and Processors.

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