Apple and Intel Team Up on U.S. Chip Production as Washington Pushes Domestic Manufacturing

BY MIRABEL ODETA

U.S. President Donald Trump said Thursday that Apple has agreed to work with Intel to design and manufacture chips in the United States, marking a potential shift in the way one of the world’s largest technology companies manages its semiconductor supply chain.

The reported partnership would help Apple expand its manufacturing options as the company looks to secure additional chip production capacity. Apple currently depends heavily on Taiwan Semiconductor Manufacturing Co. (TSMC), which produces many of the advanced chips used in Apple devices. However, TSMC’s most advanced manufacturing facilities are facing increasing demand from major artificial intelligence chip companies, including Nvidia and AMD.

The possibility of increased business from Apple sent Intel shares higher, with the company’s stock rising about 6.5% in premarket trading. Intel shares have already gained significantly this year as investors respond to the company’s efforts to rebuild its chip manufacturing business and compete more closely with leading semiconductor manufacturers.

Intel and Apple have reportedly been discussing a potential agreement for more than a year, with earlier reports indicating that the companies reached a preliminary arrangement to produce certain chips for Apple.

A contract with Apple would provide Intel with a major customer relationship and steady demand from one of the world’s largest consumer electronics companies. The deal could also strengthen Intel’s reputation in contract chip manufacturing, an area where the company has struggled to match the scale and efficiency of TSMC in recent years.

Intel has been working to improve its manufacturing capabilities, including the development of its next-generation 18A process technology. The company recently announced that the technology had entered initial production as it responds to growing demand for advanced processors used in computers, data centers, and artificial intelligence systems.

The potential Apple partnership comes as the U.S. government continues efforts to strengthen domestic semiconductor production and reduce dependence on overseas supply chains. Last year, the Trump administration took a 10% stake in Intel and announced plans for approximately $10 billion in investment to support the expansion and construction of semiconductor facilities in the United States.

Trump has previously suggested that the government could have secured an even larger stake in Intel, noting that the value of the government’s position later increased substantially.

The administration has also increased efforts to secure supplies of critical technologies and materials, including semiconductors, as competition with China continues to influence U.S. industrial policy. Government investments and partnerships with major technology companies are being used as part of a broader strategy to expand domestic manufacturing capacity.

For Apple, working with Intel could provide another source of chip production and reduce risks linked to relying on a single major supplier. For Intel, securing Apple as a customer would represent a major milestone in its attempt to become a stronger competitor in the global semiconductor manufacturing market.