Apple partners with Intel for US chip production, Trump says

Apple has agreed to collaborate with Intel to produce some of its chips in the United States, according to President Trump on Thursday.

Following his announcement, Intel’s stock increased by 9 percent in premarket trading, while Apple rose 0.6 percent.

Neither company has officially confirmed the deal, but The Wall Street Journal reported last month that Apple and Intel had reached a preliminary agreement for Intel to manufacture processors for Apple devices.

Intel would produce chips based on Apple’s designs, similar to TSMC’s current role. Rumors have suggested Intel might supply low-end processors, including the lowest-end M-series chips used in some iPads and Macs.

Previously, Apple used Intel chips for Macs but faced delays; now, it designs its own Arm-based chips and works with TSMC for manufacturing, allowing more predictable updates.

Apple has not previously considered Intel as a supplier, partly because Intel has lagged behind rivals like TSMC and Samsung, and due to past conflicts. However, that may be changing under CEO Lip-Bu Tan, who took over last year and has worked to revive Intel’s chip manufacturing division.

His efforts seem successful, as Intel’s stock has surged 464 percent over the past year, reaching a market cap of $608.7 billion. The US government also invested by taking a 10 percent stake, converting $8.9 billion in Chips Act grants into equity.

Meanwhile, the Cupertino-based company aims to diversify its supply chain, since TSMC remains its sole manufacturer for Apple Silicon. During the latest earnings call, CEO Tim Cook mentioned iPhone 17 supply constraints due to a shortage of A19 and A19 Pro chips from TSMC.

Due to the surge in AI demand for AI servers, TSMC has less capacity available for consumer-device chips. As a result, Apple faces more difficulty in securing production slots.