President Trump announced today on TruthSocial that Apple and Intel have agreed to a partnership where Intel will manufacture chips for future Apple devices using Intel’s American-based fabrication sites. Neither Apple nor Intel have issued official statements, but The Wall Street Journal reported in May that the two companies had established a preliminary agreement to produce future chips.
Intel has already started small-scale testing of lower-end iPhone, iPad, and Mac chip fabrication, with production expected to ramp up throughout 2027 and 2028. Apple is utilizing Intel’s 18A process for these chips. The company could begin shipping chips to Apple as soon as mid-2027.
On Apple’s most recent earnings call, CEO Tim Cook said iPhone 17 supply had been constrained during the quarter because Apple couldn’t secure enough A19 and A19 Pro chips from TSMC. With the AI boom driving massive demand for AI servers, TSMC has less capacity available for consumer-device chips, leaving Apple with limited negotiating power.
Apple has relied almost entirely on Taiwan Semiconductor Manufacturing Company for its chip production since designing its own Arm-based processors. This deal marks Apple’s first major chip sourcing shift away from TSMC in years. TSMC will remain responsible for more than 90 percent of Apple’s chip supply.
The partnership also represents a historic reversal. Apple last sourced chips from Intel for Macs in 2020, when it transitioned to its own Apple silicon. Intel had trailed rivals like TSMC and Samsung in manufacturing capabilities, and the two companies had a rocky competitive history. Under new CEO Lip-Bu Tan, who took over last year, Intel has been pushing to turn around its struggling chip manufacturing arm.
Apple will not be sourcing its latest flagship chips from Intel. Intel is unlikely to supply the most advanced processors for Apple’s highest-end iPhones; the company has kicked off production of legacy chips for older iPhone, iPad, and Mac models. Intel’s wafer plans for Apple reflect the technology lifecycle of the 18A-P series: small-scale testing in 2026, ramp in 2027, continued growth in 2028, and decline in 2029.
The US government played a direct role in facilitating the deal. The Trump administration has been working to secure new contracts for Intel, which is now partly owned by the US. The government converted $8.9 billion in unpaid Chips Act grants into a 10 percent equity stake in Intel last year. Trump personally advocated for the deal with Apple CEO Tim Cook during a White House meeting.
Intel stock surged 9 percent in pre-market trading following Trump’s announcement. The company’s stock has surged 464 percent over the past 12 months, hitting a market cap of $608.7 billion. Apple stock rose 0.6 percent in premarket trading.
