President Donald Trump announced on Truth Social that Apple has agreed to collaborate with Intel on designing and manufacturing chips within the United States. This potential partnership aims to diversify Apple's supply chain beyond TSMC and bolster Intel's manufacturing business.
This potential collaboration could significantly bolster U.S. domestic chip manufacturing capabilities, reduce reliance on foreign foundries for critical technology, and provide Intel with a substantial new customer, impacting the competitive landscape of semiconductor production.
U.S. President Donald Trump announced on his Truth Social platform that Apple has agreed to collaborate with Intel on designing and manufacturing its chips within the United States. This potential partnership is seen as a move to diversify Apple's manufacturing base, which currently relies heavily on Taiwan Semiconductor Manufacturing Company (TSMC), a foundry in high demand from AI chipmakers like Nvidia and AMD.
Discussions between Apple and Intel regarding chip production have been ongoing for over a year, with a preliminary deal reportedly reached in May. For Intel, a contract with Apple would provide steady demand from a major consumer electronics company, potentially boosting its reputation and manufacturing business, which has lagged behind TSMC in recent years. Intel recently announced that its new 18A manufacturing technology has entered initial production.
The Trump administration has previously shown support for Intel, taking a 10% stake in the company and announcing plans to invest approximately $10 billion to expand U.S. factories. This initiative aligns with broader efforts by the administration to secure U.S. supply chains for critical minerals and semiconductors and reduce reliance on China.