Apple Teams Up With Intel on US Chip Design and Manufacturing

President Donald Trump said in a Truth Social post that Apple has agreed to work with Intel to design and manufacture chips in the United States, Anusha Shah reported for Reuters.

Intel's foundry operations have struggled in recent years to match the technological leadership and market position of TSMC.

The reported partnership would help Apple diversify its semiconductor supply chain as demand for advanced chip production continues to grow.

Apple currently relies heavily on Taiwan Semiconductor Manufacturing Co. (TSMC), whose production capacity remains in high demand from major artificial intelligence chipmakers, including Nvidia and AMD.

Intel shares rose about 6.5 percent in premarket trading following the announcement, extending gains that have roughly tripled the company's stock price this year.

The Wall Street Journal reported in May that Intel and Apple had reached a preliminary agreement after more than a year of discussions.

An Apple manufacturing contract would provide Intel with a stable source of demand from one of the world's largest consumer-electronics companies and strengthen the company's efforts to expand its semiconductor manufacturing business.

Intel's foundry operations have struggled in recent years to match the technological leadership and market position of TSMC.