U.S. President Donald Trump said on Thursday that Apple has agreed to work with Intel on designing and manufacturing chips in the United States.
Trump announced the proposed Apple-Intel partnership through a post on Truth Social. However, neither Apple nor Intel immediately confirmed the agreement.
Apple Seeks to Diversify Chip Production
A partnership with Intel could help Apple expand and diversify its semiconductor supply chain.
The iPhone maker currently depends heavily on Taiwan Semiconductor Manufacturing Company, better known as TSMC. However, demand for TSMC’s advanced manufacturing capacity has increased sharply due to artificial intelligence chipmakers such as Nvidia and AMD.
Working with Intel could provide Apple with additional production capacity while supporting its efforts to manufacture more components in the United States.
Intel Reportedly Reached a Preliminary Apple Deal
Intel reached a preliminary agreement to manufacture some Apple chips following more than a year of negotiations, according to a Wall Street Journal report published in May.
Apple and Intel did not immediately respond to requests for comment outside normal business hours.
Until the companies officially confirm the arrangement, the exact size, timeline and financial terms of the partnership remain unclear.
Apple Contract Could Strengthen Intel’s Foundry Business
Securing Apple as a customer would represent a major victory for Intel.
Apple is one of the world’s largest consumer electronics companies and requires a substantial supply of advanced processors. A long-term manufacturing contract could therefore provide Intel with consistent demand.
The agreement could also improve Intel’s reputation as a chip manufacturer. Its foundry division has struggled to compete with TSMC in recent years.
Intel Begins Production With 18A Technology
Earlier this week, Intel announced that its next-generation 18A manufacturing technology had entered initial production.
The company said it was experiencing strong demand for its central processing units. Intel hopes its new manufacturing process will help it compete more effectively in the global semiconductor market.
The 18A technology is also a central part of Intel’s strategy to attract major external customers to its manufacturing business.
Trump Administration Supports U.S. Chip Production
The Trump administration has increased its efforts to strengthen domestic semiconductor manufacturing and secure critical U.S. supply chains.
Last year, the administration acquired a 10% stake in Intel and announced plans to invest approximately $10 billion in the company. The funding was intended to support the construction and expansion of semiconductor factories across the United States.
Trump later said the government should have requested a larger stake in Intel. His comments came after the value of the government’s position reportedly increased to more than $50 billion.
United States Seeks to Reduce Reliance on China
The administration has also taken steps to secure supplies of semiconductors and critical minerals.
These measures include government investments and equity stakes in strategically important companies. The broader objective is to reduce U.S. dependence on China and strengthen domestic production of essential technologies.
A confirmed partnership between Apple and Intel would support that strategy by bringing more chip design and manufacturing activity to the United States.
