18 Jun (Reuters) – US President Donald Trump said in a post on Truth Social this Thursday that Apple has agreed to work with Intel to design and manufacture its chips in the United States.
A partnership with Intel helps Apple diversify its manufacturing base as it seeks additional capacity for chip production. The iPhone maker relies heavily on TSMC, whose advanced production lines are in high demand from AI chip makers such as Nvidia and AMD.
Intel shares rose about 6.5% in premarket trading, extending a roughly three-fold gain so far this year.
Intel reached a preliminary agreement to make some chips for Apple after more than a year of negotiations, the Wall Street Journal reported in May.
Apple and Intel did not immediately respond to a Reuters request for comment outside normal business hours.
A contract with Apple guarantees Intel constant demand from one of the world’s largest consumer electronics companies, boosting both its reputation and its manufacturing business, which has lagged behind TSMC in recent years.
Earlier this week, Intel reported that a new generation of its 18A manufacturing technology has entered initial production, as the chipmaker sees strong demand for its central processors.
Last year, the Trump administration acquired a 10% stake in Intel and announced plans to invest around $10 billion in the chipmaker to build or expand factories in the US.
Trump had previously said he “should have asked for more” equity in Intel, eight months after the government’s stake in the company became worth more than $50 billion.
Continues after advertising
The administration has been stepping up efforts to secure U.S. supply chains of critical minerals and semiconductors, including through the acquisition of equity stakes in companies, in order to reduce dependence on China.
