President Trump announces Apple and Intel partnership for US chip manufacturing
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President Donald Trump stated that Apple has reached an agreement with Intel to design and manufacture semiconductors within the United States. While neither company has issued an official statement, the news led to a significant increase in Intel's share price.
Amalgamated from Engadget (opens in new tab), Tom's Hardware (opens in new tab), Times of India (opens in new tab), 9to5Mac (opens in new tab), MarketWatch (opens in new tab)
President Donald Trump announced on Thursday that Apple and Intel have reached an agreement to manufacture semiconductors for Apple devices within the United States. The announcement, shared via Truth Social, indicates that Intel will utilize its domestic fabrication sites to produce components for the technology company.
Objectives of the partnership
The Times of India reported that the collaboration is intended to bolster the American semiconductor industry and reverse the long-term trend of manufacturing shifting to overseas locations. According to the report, the partnership seeks to provide Apple with a more diversified supply chain, specifically aiming to reduce the company's current reliance on manufacturing in Taiwan. Trump described the move as a way to bring production back to the United States.
Market and corporate response
Following the news, Intel shares saw a significant rally in premarket trading, as reported by MarketWatch. Despite the reports of a finalized deal, neither Apple nor Intel has issued an official statement confirming the agreement. Tom's Hardware noted that while the news generated considerable investor interest, the specific terms of the "design and build" arrangement remain unverified by the companies involved.
Technical considerations
While the announcement suggests a shift in manufacturing, 9to5Mac reported that it is unlikely Intel will be able to supply the most advanced chips for Apple's premium devices in the near term. The outlet noted that the breadth and depth of the manufacturing agreement have not been disclosed. The partnership will specifically leverage Intel's American-based fabrication facilities to produce chips for future Apple products.
Impact on supply chains
The reported move highlights a potential shift in how major consumer electronics companies manage their global supply chains. By establishing a domestic manufacturing presence, the companies may aim to mitigate risks associated with geographic concentration in the semiconductor industry. The specific production timelines and the volume of chips to be produced in the United States have not been released.