Apple is set to begin purchasing computer chips from Intel, according to a social media post made by former President Donald Trump on Thursday. The reported arrangement represents a notable development for Intel, which has faced challenges in securing large clients amid stiff competition in the semiconductor industry.
While neither Apple nor Intel have publicly confirmed the agreement, the move aligns with ongoing efforts by the Trump administration to bolster domestic semiconductor manufacturing. Apple, one of the world’s largest buyers of chips, has historically relied on suppliers like Taiwan Semiconductor Manufacturing Company (TSMC) for the majority of its processors, especially those used in iPhones and Macs. Taiwan’s status as a self-governed island claimed by China has added geopolitical complexities to the supply chain.
The administration has previously exerted pressure on Apple to increase production of its chips within the United States, including threats of tariffs on semiconductors made overseas. Last year, the U.S. government purchased a 10 percent stake in Intel for $8.9 billion as part of its strategy to revive domestic chip production. Trump credited these efforts with persuading Nvidia to invest $5 billion in Intel and working alongside Elon Musk on plans for Intel to help supply chips for Terafab, a manufacturing facility Musk is developing.
Following Trump’s announcement, Intel’s shares surged more than 6 percent, raising the company’s market value to approximately $650 billion—up from around $100 billion when the government acquired its stake.
Industry analysts caution that any partnership between Apple and Intel to design and produce chips in the U.S. is unlikely to yield products before 2028. Chip development cycles are lengthy, often spanning two years or more, as companies conduct extensive design work and testing before mass production. Ben Bajarin, principal analyst at Creative Strategies, anticipates Apple will initially use Intel’s manufacturing capabilities for a limited volume of Mac-related chips before potentially expanding to iPhone processors.
Intel, long dominant in PC processors, lost ground to TSMC in terms of manufacturing technology over the past decade and failed to capture significant market share in mobile and artificial intelligence chips. About five years ago, Intel launched an aggressive strategy to modernize its production processes and attract outside customers, but a lag behind TSMC’s chipmaking advancements hindered its ability to secure major contracts, including with Apple.
Recent changes in the semiconductor market may have increased Intel’s appeal. Soaring global demand has strained TSMC’s production capacity, despite its efforts to build new fabrication plants. Nvidia has surpassed Apple as TSMC’s largest customer, providing Apple with an additional incentive to explore new manufacturing partnerships, experts said. Intel has also introduced improved chip fabrication processes that narrow the technology gap with TSMC.
“Every manufacturer is running at full capacity,” Bajarin noted. “This is a massive validation from Apple for Intel, and that’s all it takes for customers to say, ‘If they’re going to go do it, then I should consider it, too.’”