Former President Donald Trump has revealed a significant agreement between Apple and Intel, where the tech giants will partner to design and manufacture advanced chips within the United States. This announcement signals a strategic shift aimed at bolstering domestic semiconductor production and diversifying supply chains.
The deal is poised to provide a substantial uplift to Intel's contract manufacturing ambitions. For years, Intel has sought to expand its foundry services to compete more effectively with Taiwan Semiconductor Manufacturing Company (TSMC), the dominant global producer of advanced chips. The US government, which holds a 10% stake in Intel, has actively supported the chipmaker, with Trump noting previous efforts to connect companies like Nvidia and Tesla with Intel.
Apple Seeks Supply Chain Resilience
For Apple, this partnership could significantly reduce its current dependence on TSMC, which presently fabricates the in-house M-series processors used across its iPhones, Macs, and other devices. TSMC's manufacturing capacity has faced increasing pressure due to soaring demand for artificial intelligence (AI) chips from major players like Nvidia and AMD. Bringing Intel into its supplier network offers Apple additional capacity and aligns with broader US initiatives to expand semiconductor manufacturing domestically.
While financial terms of the agreement and specific Apple chips to be produced by Intel were not disclosed, the Wall Street Journal had previously reported on preliminary discussions between the two companies. This development marks a full-circle moment, as Intel supplied processors for Apple's Mac computers for approximately 15 years before Apple transitioned to its custom M-series chips in 2020. That shift allowed Apple greater control over performance and power efficiency.
Intel's Expanding Foundry Business
Intel's push into contract manufacturing has seen recent successes, including securing Tesla as a key customer for its next-generation 14A manufacturing process, expected to enter mass production in 2029. This Apple deal further solidifies Intel's position as a crucial player in the evolving landscape of global chip production, particularly within the United States.