Trump Claims Apple And Intel Struck A Major US Chip Manufacturing Deal
President Donald Trump announced today that Apple has finalized a historic deal to design and manufacture its next-generation chips using Intel's facilities on American soil. Neither company has commented on the claim, but if true, this would be huge for Apple, which has spent years relying heavily on Taiwan Semiconductor Manufacturing Company (TSMC) to build the custom silicon powering its iPhones and Macs. It's only a matter of time when we find out whether Trump's strong-arming tech companies to repatriate their manufacturing in the United States truly pans out.
Again, assuming Trump's post on Truth Social is accurate, the deal is the culmination of a yearlong pressure campaign led by U.S. Commerce Secretary Howard Lutnick, who reportedly met with Apple leadership repeatedly to broker a domestic alliance with Intel. Rumors of a preliminary partnership had been circulating for months, so it's possible that Trump's post alludes to something real. Also In his post, President Trump heavily critiqued previous administrations for allowing foreign nations to dominate the semiconductor landscape, emphasizing his use of tariffs and economic incentives to force major tech players back to domestic supply chains.
For Intel, securing Apple as a foundry customer would be a monumental victory. Once the undisputed titan of the chip world with its "Intel Inside" branding, the company struggled for years to keep pace with foreign competitors as production moved overseas. Under the direction of former CEO Pat Gelsinger and current CEO Lip-Bu Tan, Intel aggressively overhauled its foundry division. The company successfully executed its ambitious roadmap to develop five manufacturing nodes in four years, culminating in its 18A process.
Insider reports suggest that Apple has already begun testing system-on-chips (SoCs) built on Intel’s updated 18A-P tech. Testing is slated to continue through the end of 2026, with full-scale production and initial deliveries for Apple’s M7 Mac chips targeted for late 2027, followed by next-generation iPhone chips built on Intel's 14A node by 2028. Intel is expected to fulfill Apple’s domestic orders across its heavily
subsidized fabrication plants in Oregon, Arizona, and Ohio.
Also at play here is the ongoing financial entanglement between the federal government and Intel. In August last year, the U.S. government took an 10% equity stake in Intel via an $8.9 billion taxpayer investment. This capital injection combined funds originally earmarked through the CHIPS Act with resources from the military's Secure Enclave program. In his statement, Trump explicitly tied the government's stake to Intel's recent financial turnaround, claiming the company's valuation has soared from $100 billion to $600 billion due to the state's intervention and subsequent high-profile contracts, which also include a partnership with Elon Musk's TeraFab.
Also at play here is the ongoing financial entanglement between the federal government and Intel. In August last year, the U.S. government took an 10% equity stake in Intel via an $8.9 billion taxpayer investment. This capital injection combined funds originally earmarked through the CHIPS Act with resources from the military's Secure Enclave program. In his statement, Trump explicitly tied the government's stake to Intel's recent financial turnaround, claiming the company's valuation has soared from $100 billion to $600 billion due to the state's intervention and subsequent high-profile contracts, which also include a partnership with Elon Musk's TeraFab.
Shares of Intel are up more than 9% this morning on the heel's of President Trump's post. Apple's stock is up around 0.33% at the time of this writing.
