US President Donald Trump said in a Truth Social post yesterday that Apple has agreed to work with Intel to design and manufacture its chips in the nation.A partnership with Intel helps Apple diversify its manufacturing base as it seeks additional chip capacity. The iPhone maker relies heavily on Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), whose advanced production lines are in high demand from artificial intelligence (AI) chipmakers such as Nvidia Corp and Advanced Micro Devices Inc.Intel shares rose about 6.5 percent in premarket trading, extending a roughly threefold gain so far this year.
Intel and Apple logos are seen in this illustration taken on Sept. 24 last year.
Intel reached a preliminary deal to make some chips for Apple after more than a year of discussions, the Wall Street Journal reported last month.Apple and Intel did not immediately respond to a Reuters’ request for comments outside regular business hours.
An Apple contract gives Intel a steady demand from one of the world’s largest consumer electronics companies, boosting both its reputation and a manufacturing business that has lagged TSMC in recent years.Earlier this week, Intel said a new generation of its manufacturing tech 18A has entered initial production, as it sees strong demand for its central processors.Last year, the Trump administration took a 10 percent stake in Intel and said it plans to invest about US$10 billion in the chipmaker to build or expand US factories.Trump has said he “should have asked for more” of a stake in Intel, eight months after the government’s Intel position grew to be worth more than US$50 billion.The administration has been stepping up efforts to secure US supply chains for critical minerals and semiconductors, including taking equity stakes in companies to reduce reliance on China.
