Apple Agrees To Partner With Intel for Domestic Chip Manufacturing in United States: Donald Trump
U.S. President Donald Trump announced that Apple has agreed to partner with Intel to design and build chips domestically. While neither company has officially confirmed the deal, it follows reports of preliminary discussions to diversify Apple’s manufacturing away from TSMC. The move marks a potential turning point for U.S. semiconductor production and Intel’s foundry business.
United States President Donald Trump announced on Thursday that Apple has agreed to collaborate with Intel on the design and domestic manufacturing of semiconductor chips within the United States. The statement, shared via the Truth Social platform, signals a significant potential shift in Apple’s manufacturing strategy, which has historically relied almost exclusively on Taiwan Semiconductor Manufacturing Co. (TSMC) for its high-performance processors.
While the announcement has drawn considerable attention, neither Apple nor Intel has issued a formal statement confirming a finalised partnership. Industry reports suggest that the two companies have been engaged in intensive negotiations for over a year. A preliminary agreement regarding the production of certain chip components had previously surfaced in May, though technical details concerning specific product lines or manufacturing nodes remain unconfirmed. iPhone Air 2 To Be Released in Spring 2027; Know What Changes To Expect.
For Apple, the integration of domestic production capacity serves as a long-term hedge against geopolitical risks and global supply chain volatility. By potentially utilising Intel’s foundry services, the Cupertino-based company would gain a secondary source for its silicon requirements, reducing its deep-seated dependence on facilities in East Asia. This move aligns with broader efforts by U.S. policymakers to incentivise the "onshoring" of critical technology infrastructure.
Intel, under its current leadership, is actively seeking to revitalise its foundry business and establish itself as a viable alternative for leading-edge chip production. Securing Apple as a high-profile client would provide significant validation for Intel's advanced manufacturing processes, such as its 18A-P node. Industry analysts observe that while TSMC maintains a lead in manufacturing scale and density, a successful collaboration with Apple could bolster Intel's position as a foundational partner in the American semiconductor ecosystem.
The Trump administration has been a vocal proponent of strengthening the U.S. domestic semiconductor industry, viewing it as essential for maintaining a competitive edge in artificial intelligence, military technology, and global economic leadership. The government’s active encouragement of partnerships between domestic tech giants and local foundries highlights the strategic importance now placed on semiconductor manufacturing as critical national infrastructure. Apple Products To Get Costlier? CEO Tim Cook Warns of Impending Price Hikes Amid Global Memory, Storage Chip Shortage Driven by AI Demand.
Despite the excitement surrounding a potential shift in supply chain dynamics, experts remain cautious regarding the execution of such a complex transition. Moving high-volume, high-performance production to a new foundry involves significant challenges related to yield, efficiency, and integration. Should the agreement materialise into full-scale production, it would represent one of the most substantial structural changes to the consumer electronics manufacturing landscape in over a decade.
(The above story first appeared on LatestLY on Jun 18, 2026 11:21 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).