Key Takeaways
- Apple plans to partner with Intel for U.S.-based chip design and production.
- The deal helps Apple reduce reliance on TSMC manufacturing capacity.
- Intel gains a major customer as it expands domestic chip manufacturing.
President Donald Trump said Thursday that Apple has agreed to work with Intel to design and manufacture chips in the United States, marking a major Apple Intel Chip Deal aimed at expanding domestic semiconductor production.
The announcement, made in a post on Truth Social, marks a potential milestone for both companies as Apple seeks additional chip manufacturing capacity and Intel works to expand its contract manufacturing business.
Apple expands U.S. Chip manufacturing strategy
Trump said Apple will partner with Intel to design and produce chips domestically. The Apple Intel Chip Deal could help Apple diversify its manufacturing base beyond Taiwan Semiconductor Manufacturing Co. (TSMC), which currently produces many of Apple’s chips.
TSMC’s advanced manufacturing facilities remain in high demand from artificial intelligence chipmakers, including Nvidia and AMD. Additional U.S.-based production capacity could help Apple secure future chip supplies while reducing reliance on overseas manufacturing.
Apple and Intel did not immediately respond to Reuters requests for comment outside regular business hours.
The Wall Street Journal reported in May that Intel had reached a preliminary agreement to manufacture some chips for Apple following more than a year of discussions between the companies.
Intel gains major customer as manufacturing efforts advance
The reported partnership provides Intel with a high-profile customer and a steady source of demand as the Apple Intel Chip Deal strengthens Intel’s contract manufacturing ambitions.
Intel shares rose about 6.5% in premarket trading following Trump’s announcement. The stock has already gained roughly threefold this year.
Earlier this week, Intel said its next-generation 18A manufacturing technology had entered initial production. The company said demand remains strong for its central processing units as it seeks to compete more aggressively in advanced chip manufacturing.
Industry analysts have viewed Intel’s contract manufacturing business as a key part of the company’s turnaround strategy. A deal with Apple could strengthen Intel’s reputation as a domestic chip producer and help it close the gap with TSMC, which dominates the advanced semiconductor manufacturing market.
Administration pushes domestic supply chains
The announcement comes as the Trump administration continues efforts to expand U.S. semiconductor production and reduce dependence on foreign supply chains.
Last year, the administration acquired a 10% stake in Intel and announced plans to invest about $10 billion in the company to build or expand manufacturing facilities in the United States.
Trump later said the government should have sought a larger ownership position after the value of its Intel stake increased significantly.
The administration has also pursued policies aimed at securing domestic supplies of critical minerals and semiconductors. Those efforts have included taking equity stakes in companies viewed as strategically important to U.S. manufacturing and technology supply chains.
Trump said the Apple-Intel partnership represents another step toward increasing domestic production of critical technologies and strengthening the nation’s semiconductor industry.
