Apple has agreed to partner with Intel to design and manufacture chips within the United States. President Trump confirmed the collaboration on May 8, ending over a year of intensive negotiations and direct lobbying by the White House.
This preliminary agreement marks a strategic shift for Apple, which has historically relied exclusively on Taiwan Semiconductor Manufacturing Company for its custom silicon. Moving production to Intel’s domestic foundries diversifies the supply chain for iPhones, iPads, and Macs.
For Intel, securing Apple validates its aggressive pivot toward a third-party foundry business model. This commercial milestone follows an $8.9 billion federal equity investment made in August 2025 to expand domestic manufacturing capacity.
Markets reacted immediately to the news. Intel shares surged approximately 14%, closing above $130. With the US government holding a 10% stake, the rally generated substantial unrealized gains on the public investment.
Despite the optimism, execution risks remain. Manufacturing cutting-edge chips at Apple's required scale is complex, and Intel must still demonstrate it can match TSMC’s established process leadership. Competitors like Samsung and TSMC are simultaneously expanding their own US fabrication footprints in Arizona and Texas.