Apple and Intel partner to build chips in the US, Trump confirms

US President Donald Trump has said Apple and Intel are joining forces to design and manufacture chips in the United States, although neither company has formally announced such a partnership.

In a recent post on Truth Social, Trump claimed the two technology giants would collaborate on domestic chip production. The remarks come months after reports suggested the companies had been discussing a potential agreement.

According to a Wall Street Journal report published in May, Intel had reached a preliminary arrangement to manufacture certain chips for Apple after more than a year of talks between the two companies.

A partnership with Intel could help Apple broaden its manufacturing network at a time when demand for advanced semiconductor capacity is surging.

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Apple currently depends heavily on Taiwan Semiconductor Manufacturing Co. (TSMC), whose cutting-edge production facilities are also being sought by AI chip leaders such as Nvidia and AMD, increasing competition for supply.

Intel's latest manufacturing milestone could strengthen Apple ambitions

While neither Apple nor Intel has publicly confirmed a chipmaking partnership, Intel has taken another step that could improve its chances of winning business from the iPhone maker.

According to a recent CNBC report, the semiconductor giant has started producing a more advanced version of its 18A manufacturing technology, known as 18A-P. The announcement was made during the VLSI Symposium held in Honolulu, Hawaii, marking another milestone in Intel's efforts to establish itself as a leading contract chip manufacturer.

The development is significant because Apple has reportedly been exploring options to diversify its chip supply chain. The company currently relies heavily on Taiwan Semiconductor Manufacturing Co. (TSMC), whose advanced facilities are increasingly being occupied by demand from artificial intelligence leaders such as Nvidia and AMD.

Intel's foundry chief Naga Chandrasekaran described the progress as evidence that the company remains committed to competing at the highest level of chip production.

"This is a journey, and while we have more work ahead, we appreciate the opportunity to share the progress we are making," Chandrasekaran said in a statement, reports CNBC.

He added that the latest achievement should serve as a "signal to Intel Foundry customers and partners that we are fully committed to leading edge process innovation over the long term."

A crucial test for Intel's turnaround strategy

First unveiled last year, 18A-P has now entered what the industry refers to as "risk production", an early phase of manufacturing designed to validate performance and reliability before chips move into full-scale commercial production.

Intel has pinned much of its turnaround strategy on the success of its 18A technology. After years of manufacturing setbacks and struggles with production yields, the company hopes the platform will allow it to become a major supplier of chips designed by external customers rather than just producing processors for its own products.

Although Intel introduced the original 18A process for PC chips earlier this year and has been manufacturing it in volume at its Arizona facility since December, the company has yet to land a major third-party client. Industry analysts cited by CNBC believe the upgraded 18A-P process could prove to be a more attractive proposition for potential customers.

According to Intel, the new process can deliver up to 9 per cent better performance than the standard 18A technology or reduce power consumption by as much as 18 per cent. The company also said the chips offer at least 20 per cent greater heat resistance while remaining compatible with existing 18A production infrastructure.

Those improvements could prove crucial as Intel attempts to convince companies such as Apple that it can provide a viable alternative to established foundry leaders and regain its footing in the increasingly competitive semiconductor industry.