Apple (NASDAQ: AAPL) is returning to Intel (NASDAQ: INTC) as a chip partner, with President Donald Trump announcing Thursday that the two companies have agreed to design and manufacture chips together in the United States.
The deal marks a significant shift for Apple, which abandoned Intel processors in 2020 in favour of its in-house M-series chips built by Taiwan’s TSMC.
Trump framed the agreement as part of a broader effort to reshore semiconductor production, posting on Truth Social that “stupid presidents” had allowed Taiwan and others to “steal” American chip factories. The administration holds a 10% stake in Intel, making the U.S. government a direct beneficiary of any business Intel wins.
The announcement is a meaningful validation for Intel, a company that spent years on the sidelines of the AI boom, hampered by manufacturing delays and a lack of major foundry customers. CEO Lip-Bu Tan, who took over early last year, has been working to reverse that trajectory. Tesla signed on in April as the first major customer for Intel’s next-generation 14A manufacturing process, which is slated for mass production in 2029, and Nvidia has also committed to building chips with Intel.
Apple’s motivation is more practical than political. TSMC, which currently manufactures Apple’s M-series chips, has been stretched by surging demand from AI hardware companies including Nvidia and AMD. Adding Intel as a manufacturing partner gives Apple more capacity and reduces concentration risk in its supply chain.
The specific chips Intel would produce for Apple were not addressed in Trump’s announcement or in earlier Wall Street Journal reporting, which described a preliminary agreement reached after more than a year of talks. Whether TSMC’s role in Apple’s supply chain would shrink as a result also went unaddressed.
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