Apple-Intel Domestic Chip Manufacturing Partnership Announced

President Donald Trump announced on June 18 2026 that Apple and Intel have agreed to design and fabricate Apple-designed processors in the United States. Intel will act as a contract foundry, using its 18A-P node for initial production, with test runs slated for 2026 and volume shipments expected from 2027 onward.

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Apple’s reliance on Taiwan Semiconductor Manufacturing Co. (TSMC) has strained under AI-driven demand, leading to chip shortages for iPhone 17 and higher component costs. The U.S. government’s push for semiconductor independence has encouraged domestic alternatives, positioning Intel as a potential second supplier.

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• Donald Trump – former U.S. president, announced the partnership.

Apple & Intel to make chips in the US

• Tim Cook – Apple CEO, warned that price increases are “unavoidable.”

Apple Intel Chip Deal: Impact on iPhones and Macs

• Lip-Bu Tan – Intel CEO, highlighted advanced-packaging as “defining” for next-generation computing.

Intel stock enters week at record high after Apple chip report, Micron test ahead

• Ming-Chi Kuo – TF International analyst, identified the M7 and lower-end A-series as Intel targets.

Apple Intel Chip Deal: Impact on iPhones and Macs

• May 2026 – Wall Street Journal reports a preliminary agreement.

Apple Intel Chip Deal: Impact on iPhones and Macs

• June 16 2026 – Intel’s 18A-P process enters risk production.

Apple Intel Chip Deal: Impact on iPhones and Macs

• June 18 2026 – Trump’s public announcement.

Apple Intel Chip Deal: Impact on iPhones and Macs

• June 21 2026 – Intel shares close at $133.99, up 10 %.

Intel stock enters week at record high after Apple chip report, Micron test ahead

• Q2 2027 – Planned start of full-volume production.

Intel stock enters week at record high after Apple chip report, Micron test ahead

• Apple ships >200 million iPhones annually; ?80 % of the new Intel order mix will be iPhone chips.

Apple Intel Chip Deal: Impact on iPhones and Macs

• Intel’s foundry revenue hit $5.4 billion in Q1 2026, up 16 % YoY.

Intel stock enters week at record high after Apple chip report, Micron test ahead

• The U.S. holds a 10 % stake in Intel, valued at > $60 billion.

Apple Intel Chip Deal: Impact on iPhones and Macs

• Intel stock rose >10 % after the announcement, contributing to a 225 % YTD gain.

Intel stock enters week at record high after Apple chip report, Micron test ahead

Diversifying to a domestic foundry reduces Apple’s exposure to TSMC capacity constraints and may improve negotiating leverage. While short-term pricing pressure persists, the partnership aligns with broader U.S. goals of semiconductor self-sufficiency and could validate Intel’s revived foundry business.

Apple Intel Chip Deal: Impact on iPhones and Macs

Trump framed the deal as “Apple has agreed to work with Intel to design and build its chips in America.” Intel declined comment on the specific agreement, and Apple has not issued an official response. Tim Cook reiterated that price increases are “unavoidable” due to rising component costs. Intel’s CEO Lip-Bu Tan described advanced packaging as becoming “defining” for next-generation computing.

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Analysts caution that early Apple work may involve low-volume, less-critical components, testing Intel’s yield and cost targets. The timeline to competitive volume extends to 2028, and any immediate consumer-price relief appears unlikely.

Intel stock enters week at record high after Apple chip report, Micron test ahead

Trump’s post suggested a joint design effort, whereas the Wall Street Journal characterizes Intel solely as a contract fabricator. Neither Apple nor Intel has confirmed which chip families will transition, and precise production volumes remain undisclosed.

Apple Intel Chip Deal: Impact on iPhones and Macs

• “Apple has agreed to work with Intel to design and build its chips in America.” — Donald Trump, former President

Apple & Intel to make chips in the US

• “According to Engadget, Trump stated that Apple would partner with Intel on chip design and manufacturing on American soil.” — Donald Trump, Truth Social post

Apple Intel Chip Deal: Impact on iPhones and Macs

• “defining” for next-generation computing. — Lip-Bu Tan, Intel CEO

Intel stock enters week at record high after Apple chip report, Micron test ahead

• “more work ahead.” — Naga Chandrasekaran, Intel Foundry executive

Intel stock enters week at record high after Apple chip report, Micron test ahead

• “There’s still a lot of juice,” — Andy Pratt, director of investment strategy, Burney Company

Intel stock enters week at record high after Apple chip report, Micron test ahead

• “Steve Kolano, chief investment officer at Integrated Partners, said semiconductor demand was “through the roof” relative to chip capacity.” — Steve Kolano, chief investment officer, Integrated Partners

Intel stock enters week at record high after Apple chip report, Micron test ahead

Intel will conduct test runs at facilities in Oregon, Arizona, and Ohio in late 2026, with volume scaling through 2028. Apple’s pricing strategy for the iPhone 18 launch in September 2026 will reflect ongoing cost pressures, while the partnership’s long-term impact on supply-chain resilience remains to be seen.

Apple Intel Chip Deal: Impact on iPhones and Macs