Apple has Agreed to Manufacture Chips in the US With Intel

Apple has supposedly agreed to partner with Intel to manufacture some of its chips in the U.S. This is according to President Trump, who wrote a lengthy post overnight.

“Apple has agreed to work with Intel to design and build its Chips in America,” Trump wrote on Truth Social. This news follows a long string of reports that Apple was negotiating a deal with Intel. Apple was up 0.6 percent in premarket trading with the news.

Apple and Intel have both remained silent on the matter as of this writing. However, last month, it was reported that the two had reached a preliminary deal for Intel to manufacture some of Apple’s chips. Manufacturing will take place in the US and be used on future Apple products. It’s believed that Intel-made chips will be used on lower-end Apple devices, such as select iPads and Macs running entry-level M-series chipsets.

Apple and Intel have had a rocky relationship. The two companies used to be very close, with Intel providing silicon for Apple’s products until they broke up, which led to the introduction of Apple’s M-series. Since November 2020, Apple has been leveraging its very own M-series chips. The ARM-based chips are manufactured by supply chain partner TSMC. Over the years, Apple has been slowly diversifying its supply chain to reduce its reliance on Taiwan.

With the explosive AI market continuing to drive up demand for chips, Apple’s need to invest in consumer-grade chips is heightening. The use of chips to power AI servers has driven up the costs. Speaking to The Wall Street Journal, CEO Tim Cook confirmed that “Unfortunately, price increases are unavoidable” regarding the upcoming iPhone 18 series. This is all due to the costs of memory and storage chips.