Donald Trump announces close cooperation between Apple and Intel

Apple wants to expand its chip supply and is relying on collaboration with Intel. According to US President Donald Trump, both have agreed to jointly develop semiconductors and produce them in the USA.

Focus on the USA

For Apple, the cooperation means, from Reuters reports, an important step to reduce dependence on existing manufacturing partners. The iPhone manufacturer has so far had its most powerful chips produced primarily by the Taiwanese contract manufacturer TSMC. However, its modern production capacities are heavily utilized, as companies such as Nvidia and AMD also demand large quantities of chips for AI applications. Intel in particular could benefit from the agreement. The company has been trying for years to expand its position in the contract manufacturing business and to reduce the gap to market leader TSMC. A long-term order from Apple would not only ensure reliable demand for Intel, but also strengthen the reputation of its manufacturing division.

The news was received positively on the financial markets. Intel shares rose around 6.5 percent in premarket trading. This continued an already strong price development: since the beginning of the year, the chip company’s stock market value has roughly tripled, as it is clear that it will emerge from the long crisis. Back in May, the Wall Street Journal reported that Intel had reached a tentative agreement to produce certain Apple chips after more than a year of negotiations. Official statements from the two companies were initially not available.

State benefits

The announcement comes at a time in which the US government is significantly expanding its efforts to strengthen the domestic semiconductor industry. The aim is to secure important supply chains for key technologies and raw materials more closely in our own country and to reduce dependence on foreign producers, especially from China. Intel only announced at the beginning of the week that its new manufacturing technology 18A had reached the first production phase. In addition, the Trump administration took over a ten percent stake in Intel last year and announced investments of around ten billion dollars (around 9.2 billion euros) to expand American factories. The state’s participation has now increased significantly in value.