Apple and Intel Chip Partnership Claims Unconfirmed, Sources Say
Apple and Intel have not confirmed a reported deal to manufacture chips in the United States, according to multiple sources. Donald Trump claimed on Truth Social in July 2023 that Apple had finalized a partnership with Intel, but neither company has publicly acknowledged the agreement. The Wall Street Journal reported in May 2023 that the companies had reached a preliminary agreement, though no official announcements have been made.
Trump’s Claims and the Role of Government
Trump’s post alleged that Apple had “finalized a deal with Intel to design and manufacture chips in the United States,” citing a 10% stake in Intel as part of the arrangement. However, the U.S. government’s $8.9 billion investment in Intel, announced in August 2023, was part of the CHIPS Act and Secure Enclave program, not a direct quid pro quo for Apple. Commerce Secretary Howard Lutnick reportedly engaged with Apple leadership to encourage domestic chip production, but no formal partnership has been confirmed.
Historical Context and Technical Details
Apple and Intel previously collaborated on processor design, but Intel shifted to manufacturing Apple’s chips through Taiwan’s TSMC in 2020. Analyst Ming-Chi Kuo reported in May 2023 that Apple was testing chips using Intel’s 18A-P process, with potential production starting in 2026. Intel plans to manufacture these chips at facilities in Oregon, Arizona, and Ohio, though TSMC would still handle most of Apple’s production. A 2023 report by The Wall Street Journal noted that the agreement remains in early stages.
Why It Matters: Semiconductor Supply Chain Dynamics
The potential partnership reflects broader U.S. efforts to reduce reliance on foreign semiconductor manufacturing. The CHIPS Act, signed in 2022, aims to boost domestic chip production, with Intel receiving $3 billion in federal grants. However, TSMC’s dominance in advanced manufacturing—accounting for over 90% of Apple’s chips—poses a challenge. A 2023 Bloomberg analysis highlighted that Intel’s 18A-P process, while advanced, lags behind TSMC’s 3nm technology.
What’s Next for Apple and Intel?
If a partnership materializes, it could diversify Apple’s supply chain but would not immediately replace TSMC’s role. Intel’s ability to scale production and meet Apple’s demands remains uncertain. A 2023 Reuters report noted that Intel’s Oregon fab, one of the sites mentioned, has faced delays in upgrading to 18A-P manufacturing. Meanwhile, Apple’s focus on in-house chip design, as seen with the M-series processors, complicates the timeline for any new collaboration.