In August 2025, Apple CEO Tim Cook engaged in discussions with the Trump administration to seek relief from proposed 100% tariffs on semiconductor imports. These tariffs threatened to significantly increase costs across Apple’s product lineup. During these negotiations, President Trump and Commerce Secretary Howard Lutnick reportedly urged Cook to consider utilizing Intel’s fabrication plants for some of Apple’s chip production.
As a result of these talks, Apple secured an exemption from the tariffs by committing to substantial investments in U.S. manufacturing. This commitment included plans to collaborate with Intel for chip production. In June 2026, President Trump announced that Apple would begin incorporating Intel-manufactured chips into certain products, emphasizing the importance of domestic chip design and production. This announcement led to a significant surge in Intel’s stock value.
Historically, Apple has relied on Taiwan Semiconductor Manufacturing Company (TSMC) for the majority of its custom silicon needs. The decision to partner with Intel marks a notable shift, especially considering past challenges between the two companies and Intel’s previous lag behind competitors like TSMC and Samsung. Despite this new partnership, Apple is expected to continue depending on TSMC for the bulk of its chip production.
This collaboration is part of a broader initiative by the Trump administration to bolster Intel’s position in the semiconductor industry. In 2025, the U.S. government converted $9 billion in federal grants into a 10% equity stake in Intel, making it the company’s largest shareholder. Similar agreements have been reported with other tech giants like Nvidia and SpaceX, indicating a concerted effort to strengthen domestic chip manufacturing capabilities.
Intel’s foundry division has faced significant challenges, posting $10.4 billion in operating losses over the past four fiscal quarters. Concerns have been raised about Intel’s ability to produce high-quality silicon at scale. The timeline for when Intel-manufactured chips will appear in Apple products remains unclear, and Apple has not provided official comments on the partnership.
This development underscores the intricate interplay between corporate strategy and government policy in the tech industry. Apple’s move to diversify its chip manufacturing partners reflects a strategic response to geopolitical pressures and the evolving landscape of global trade. Observers will be keenly watching how this partnership influences Apple’s product performance and market dynamics in the coming years.
