Intel may have just landed the customer that could change everything.
After years of trying to convince the industry it can manufacture advanced chips for other companies, Intel appears to have secured a major vote of confidence from Apple. President Donald Trump announced Thursday that the iPhone maker would work with Intel to design and manufacture chips in the US, sending Intel’s shares soaring.
The significance extends beyond a single deal. If the partnership materializes, it would mark a major milestone in Washington’s effort to expand domestic chip production while giving Apple another manufacturing option at a time when chip supply chain reliability has become a strategic priority.
A partnership with a backdrop
The announcement comes at an interesting time for Intel. For years, the chipmaker has been trying to reinvent itself as a leading contract manufacturer capable of producing advanced chips for other companies, a difficult task in a market largely dominated by Taiwan Semiconductor Manufacturing Company (TSMC).
Since returning to office, President Trump has repeatedly backed initiatives aimed at expanding domestic chip production, a move that places Intel among the centerpiece companies in that effort.
The US government’s acquisition of a 10% stake in Intel marked one of the clearest signs of that support. Since then, the company has secured a series of high-profile wins carrying the administration’s fingerprints.
That includes a foundry manufacturing agreement with Terafab and a $5 billion commitment from Nvidia.
Against that backdrop, a potential Apple partnership would be one of Intel’s most prominent foundry wins yet.
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Shared benefits for all
In April, Apple CEO Tim Cook told Reuters that “there’s just a little less flexibility in the supply chain at the moment for getting more parts.” That comment offers a possible clue as to why Apple may be exploring new manufacturing relationships, even though the US government is involved in creating the partnership.
As demand for AI consumes more advanced chipmaking capacity, even companies with deep supplier relationships are looking for additional options. For Apple, Intel could provide access to more US-based manufacturing capacity and a hedge against future supply constraints.
For Intel, the stakes appear even higher. Getting a company like Apple on its side not only means higher sales revenue but also solid proof that Intel can deliver the kinds of chips favored by tech companies in an increasingly AI-focused world.
After the early Thursday announcement, Intel shares reportedly jumped 7%, while Apple’s shares rose 0.8%. When the US government acquired its Intel stake in 2025, the company was valued at about $100 billion. Intel’s market capitalization is now about $600 billion.
A glimpse into the future
Whether the deal is finalized, when supply is set to commence, or which specific chips Intel will make for Apple remain open questions, as both companies have yet to respond to the president’s Truth Social post. Yet even at this stage, the announcement highlights a broader shift underway across the semiconductor industry.
For years, advanced chip manufacturing has been concentrated in the hands of a few overseas players. Not only could this partnership help fragment that concentration, but it could also set a solid example that other American companies and industries will follow.
Also read: A Trump T1 teardown found hardware similarities with HTC’s U24 Pro, raising new questions about the phone’s origins.