Trump says Apple will work with Intel on chip design and production in the US

WASHINGTON: US President Donald Trump said on Thursday that Apple has agreed to partner with Intel to design and produce chips in the United States, according to a post he made on Truth Social.

The arrangement would give Apple another manufacturing option as it looks to broaden its chip supply base. The company currently depends heavily on Taiwan Semiconductor Manufacturing Company (TSMC), whose leading-edge facilities are facing strong demand from artificial intelligence chip makers including Nvidia and AMD.

The Wall Street Journal had reported in May that Intel reached a preliminary agreement to manufacture some chips for Apple after talks that lasted more than a year. Reuters said Apple and Intel did not immediately respond to requests for comment made outside normal business hours.

For Intel, securing Apple as a customer would provide consistent demand from one of the world’s biggest consumer electronics firms. It would also strengthen Intel’s standing and support its contract manufacturing business, which has trailed TSMC in recent years.

Earlier this week, Intel said its next-generation 18A manufacturing technology had moved into initial production, as the company pointed to solid demand for its central processors.

Last year, the Trump administration acquired a 10 per cent stake in Intel and announced plans to invest about $10 billion in the chipmaker to build or expand factories in the United States. Trump had earlier said he should have asked for more of a stake in Intel, eight months after the government’s holding in the company rose to a value of more than $50 billion.

The administration has also increased efforts to secure American supply chains for semiconductors and critical minerals, including by taking equity stakes in companies as part of a broader push to reduce dependence on China.