Trump announces Apple-Intel deal to design and make chips in US

Apple has agreed to work with Intel to design and manufacture chips in the United States, President Donald Trump said, potentially handing the struggling American chipmaker one of its most important customer wins in years.

Trump did not disclose the financial terms of the agreement or specify which Apple chips would be produced by Intel.  

The development could provide a significant boost to Intel’s contract manufacturing ambitions as it attempts to compete with Taiwan Semiconductor Manufacturing Company, the dominant producer of advanced chips globally.

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For Apple, the agreement could reduce its dependence on TSMC, which currently manufactures the company’s in-house processors used across iPhones, Macs and other devices.

TSMC’s manufacturing capacity has come under increasing pressure amid strong demand for artificial intelligence chips from companies including Nvidia and AMD. Bringing Intel into its supplier network could give Apple additional capacity while aligning with the Trump administration’s push to expand semiconductor production in the US.

The Wall Street Journal reported in May that Intel had reached a preliminary agreement to manufacture some chips for Apple after more than a year of discussions.

Trump described the Apple agreement as part of his administration’s efforts to support Intel, in which the US government holds a 10% stake. He said the deal followed government-backed efforts to bring companies such as Nvidia and Tesla closer to the chipmaker.

Trump had previously said he “should have asked for more” of a stake in Intel after the government’s holding in the company rose in value to more than $50 billion.

Intel supplied processors for Apple’s Mac computers for around 15 years before the technology giant began transitioning to its internally designed M-series chips in 2020. Those processors are manufactured by TSMC.

The shift to Apple silicon helped the company gain greater control over the performance and power efficiency of its computers, while ending its dependence on Intel’s processor roadmap.

In April, the chipmaker secured Tesla as the first major customer for its next-generation 14A manufacturing process, which is expected to enter mass production in 2029.