President Trump: Apple joins hands with Intel to produce chips in the US

According to Reuters, if implemented, this will be a big boost to the US chip manufacturer’s efforts to restore business operations. The contract will help Intel have a stable source of demand from one of the world’s largest consumer electronics companies, which will not only boost sales but also increase Intel’s reputation in an effort to narrow the gap with rival TSMC – the world’s largest contract chip processing company.

Immediately after Mr. Trump’s information on June 18, Intel shares jumped more than 6.5%, extending the growth streak from the beginning of the year until now. Earlier this week, Intel also announced that the production process of the new generation 18A has begun trial production with very positive market signals.

Previously in May, WSJ reported that Apple and Intel have reached a preliminary agreement after more than a year of negotiations. Intel will be responsible for processing Apple’s lower-end chip lines, including the basic M-series chips used for some iPad models and Mac computers.

Apple and Intel have not yet commented officially.

Cooperating with Intel is considered a strategic step to help Apple diversify its supply chain. They currently depend on TSMC to produce Apple Silicon chips. However, TSMC’s advanced production lines are overloaded due to huge demand from AI giants like Nvidia or AMD.

During the financial report meeting in April, Apple CEO Tim Cook said that iPhone 17 supply in the quarter was seriously limited because the company did not order enough A19 and A19 Pro chip output from its Taiwanese partner. The AI ​​fever takes over most of TSMC’s production capacity, leaving Apple in a weak position when it comes to production for consumer devices.

Meanwhile, Intel’s growth has a big impact from the US government’s policies. Last year, President Trump’s administration spent $8.9 billion from the Chip Act in exchange for a 10% stake in Intel, and planned to pour an additional $10 billion to expand factories in the US to reduce dependence on China.

The change at the top also brings a new breeze to Intel. Since Mr. Lip-Bu Tan took over the CEO position in place of Pat Gelsinger last year, the company’s chip manufacturing segment has undergone a dramatic change. In the past 12 months, Intel shares increased 464%, bringing the market capitalization of this giant to 608.7 billion USD.

In the past, before switching to Apple Silicon, Apple used chips designed by Intel for Macs but often encountered delays. This resumption of cooperation, even as a outsourcing partner, marks a major turning point for both American technology icons.