Trump says Apple will make chips with Intel in the US

Apple has agreed to work with Intel to design and manufacture chips on American soil, US President Donald Trump announced Thursday in a Truth Social post.

The deal brings a great shift in Apple's chip supply strategy and hands Intel one of the most coveted contracts in the consumer electronics industry.

Neither Apple nor Intel responded to requests for comment outside regular business hours.

Why Apple needs an alternative to TSMC

Apple currently depends heavily on Taiwan Semiconductor Manufacturing Company for its most advanced chips, and the same production lines are in fierce competition from AI chipmakers, including Nvidia and AMD.

That capacity crunch has pushed Apple to diversify, and Intel's domestic manufacturing infrastructure offers a strategically aligned option as Washington pushes to onshore semiconductor production.

The initial pact between the two tech giants was reported for the first time earlier in May by the Wall Street Journal after nearly a year of talks. The statement issued by Trump on his Truth Social profile marks the first official comment made by the US government.

The coincidence is quite interesting, given the news surrounding the chipmaker recently. As reported earlier this week, Intel announced that its next 18A manufacturing process is already in pilot manufacturing. This particular announcement was made by Intel after years of being behind TSMC in terms of developing newer process nodes.

The contract would help boost the foundry reputation of Intel along with securing a good amount of business from one of the top consumer electronics giants.

The deal carries a geopolitical dimension that extends beyond the two companies. Last year, the Trump administration took a 10% stake in Intel and announced plans to invest approximately $10 billion in expanding the chipmaker's US factory network.

Trump has since said publicly he "should have asked for more," after the government's Intel position grew to be worth over $50 billion.