Intel has reached a preliminary deal to manufacture chips for Apple devices, according to a Wall Street Journal report on Friday. The agreement, which follows more than a year of intensive negotiations, could significantly bolster Intel's contract manufacturing business and align with Washington's push to increase domestic chip production.
Intel's stock jumped 15 percent on the news, while Apple shares rose about 1.7 percent in afternoon trading. Landing Apple as a client would provide Intel with steady demand from one of the world's largest consumer electronics companies, helping it compete with TSMC.
The report said the U.S. government, now Intel's largest shareholder, played a key role in facilitating the talks. An administration official confirmed efforts to support Intel, emphasizing the goal of strengthening American semiconductor production.
For Apple, diversifying its supply chain is critical as it relies heavily on TSMC, which is also strained by demand from AI chipmakers like Nvidia and AMD. Apple CEO Tim Cook recently noted that supply constraints at its contract manufacturer held back iPhone sales.
The deal would reunite the two companies after Apple shifted from Intel processors to its own custom silicon for Macs. Intel has been securing government deals and investments from Nvidia and SoftBank as CEO Lip-Bu Tan pushes a turnaround.
Commerce Secretary Howard Lutnick met repeatedly with Apple's Tim Cook, SpaceX's Elon Musk, and Nvidia's Jensen Huang to encourage collaboration with Intel.