US President Donald Trump stated in a Truth Social post on Thursday that Apple has agreed to collaborate with Intel to design and manufacture its chips within the United States. This partnership with Intel allows Apple to diversify its manufacturing base as it seeks additional chip capacity.
Apple's Manufacturing Strategy
The iPhone maker heavily depends on TSMC, whose advanced production lines are in high demand from AI chipmakers such as Nvidia and AMD. According to a Wall Street Journal report from May, Intel reached a preliminary deal to produce some chips for Apple after over a year of discussions. Apple and Intel did not immediately respond to requests for comment outside regular business hours.
Benefits for Intel
An Apple contract provides Intel with steady demand from one of the world's largest consumer electronics companies, enhancing both its reputation and its manufacturing business, which has lagged behind TSMC in recent years. Earlier this week, Intel announced that a new generation of its manufacturing technology, 18A, has entered initial production, as the chipmaker sees strong demand for its central processors.
Government Involvement
Last year, the Trump administration took a 10% stake in Intel and announced plans to invest roughly $10 billion in the chipmaker to build or expand US factories. Trump previously stated he "should have asked for more" of a stake in Intel, eight months after the government's Intel position grew to be worth more than $50 billion. The administration has been intensifying efforts to secure US supply chains for critical minerals and semiconductors, including taking equity stakes in companies to reduce reliance on China.
