Trump says Apple to partner with Intel on US chip design, production
Trump said on Truth Social that Apple agreed to partner with Intel to design and manufacture chips in the U.S., citing Apple’s need to add capacity and diversify from TSMC. The Wall Street Journal reported in May that Intel reached a preliminary Apple deal after over a year. Apple and Intel did not comment to Reuters. Intel also said its 18A process entered initial production.
Potential incremental diversification of Apple’s chip manufacturing base via Intel, but details are preliminary and execution risk remains.
Trump says Apple agreed to work with Intel to design and manufacture chips in the US, shifting Apple’s supply-chain strategy away from TSMC concentration.
Near-term sentiment could be mildly positive for AAPL on supply-chain resilience, but magnitude likely limited without contract terms/timelines.
Background
The piece cites prior reporting that Intel reached a preliminary deal to make some Apple chips, and notes the Trump administration’s earlier equity stake and planned investment in Intel.
Why it matters
A new public statement links Apple to Intel for US chip design/manufacturing, which could shift near-term sentiment around Apple’s supply-chain diversification and Intel’s foundry demand outlook.
Market relevance
Traders may reassess the probability of Apple using Intel capacity and the near-term demand outlook for Intel’s manufacturing business.
Market effects
Reinforces the US industrial policy/foundry push and could improve sentiment toward Intel’s US manufacturing competitiveness versus TSMC for select workloads.
Supports the narrative of reshoring/expanding US semiconductor capacity, potentially benefiting US-based supply-chain participants.
If Apple meaningfully shifts capacity, it could marginally affect global foundry demand allocation, though the article does not indicate scale versus TSMC.
Alternative perspectives
This may be more political signaling than a finalized, material production commitment; without volumes/timelines, the impact on earnings power could be limited.
Apple’s chip requirements (performance, yield, process maturity) and Intel’s ability to ramp 18A at scale are the key gating items; the article provides no technical or schedule confirmation.
Key entities
- personDonald Trump
US President making the announcement via a Truth Social post.
- companyApple
iPhone maker seeking additional chip capacity and diversification beyond TSMC.
- companyIntel
US chipmaker positioned to manufacture some Apple chips and ramp its 18A process.
