Apple partners with Intel for US chip production

US President Donald Trump has said that Apple has agreed to collaborate with Intel to design and manufacture its chips in the United States, marking a significant development in the global semiconductor industry and US efforts to strengthen domestic production capacity.

In a post on Truth Social on Thursday, Trump announced that the partnership would help boost American chip manufacturing and reduce reliance on foreign suppliers. The agreement is expected to support Intel’s long-term strategy to expand its foundry business while providing Apple with additional chip production capacity.

Apple currently depends heavily on Taiwan Semiconductor Manufacturing Company (TSMC) for advanced chip production. However, rising global demand—particularly from artificial intelligence companies such as Nvidia and AMD—has placed significant pressure on TSMC’s production lines. The reported partnership with Intel is seen as a way for Apple to diversify its supply chain and secure more stable access to semiconductor manufacturing.

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According to earlier reports by the Wall Street Journal, Intel had reached a preliminary agreement to manufacture certain chips for Apple after more than a year of discussions. Although neither Apple nor Intel immediately commented on the development, the deal is being viewed as strategically important for both companies.

For Intel, the agreement represents a major opportunity to regain ground in the competitive semiconductor market, where it has lagged behind TSMC in advanced manufacturing technologies in recent years. A contract with Apple would provide steady demand from one of the world’s largest technology companies.

Intel recently announced that its next-generation 18A manufacturing technology has entered early production, signaling progress in its efforts to improve chip performance and production efficiency.

The US government has also taken a more active role in strengthening the semiconductor industry. Last year, the administration acquired a 10% stake in Intel and pledged approximately $10 billion in support to expand domestic chip manufacturing facilities.

The development reflects broader US policy goals aimed at securing supply chains for critical technologies and reducing dependence on overseas production hubs, particularly in Asia.