Apple Reaches a Chip Manufacturing Deal with Intel, Intel Stock Jumps 14%

According to reports, Apple and Intel have reached a preliminary agreement, with Intel set to manufacture chips for some Apple devices. This collaboration, if realized, would add a key alternative to Apple's supply chain and also provide a heavyweight customer endorsement for Intel's foundry business revival.

It is currently unclear which Apple products Intel will manufacture chips for. Apple ships over 200 million iPhones annually and also sells millions of iPads and Mac computers; any supply chain adjustments could have an impact on production capacity allocation and market expectations.

Driven by this news, Intel's stock price surged by 13.93%, while Apple's stock increased by 1.8% that day.

The Trump administration, holding a 10% stake in Intel, played a key role in this deal. The U.S. Secretary of Commerce has met with Apple CEO Tim Cook several times over the past year, urging the two parties to reach a cooperation agreement. Trump himself has personally lobbied for Intel during a White House meeting with Cook.

Thus far, Intel has established partnership relationships with Apple, Nvidia, and companies under Musk's umbrella.

Deal details are still unclear, which chips Intel will manufacture remains to be confirmed

Currently, both parties have not publicly disclosed the specifics of their cooperation. It is still unclear which of Apple's products Intel will be manufacturing chips for, with Apple shipping over 200 million iPhones annually, along with millions of iPads and Mac computers.

Apple has long relied on TSMC for the foundry production of its self-designed chips, covering the full range of products including iPhones, iPads, and Macs.

However, as demand for TSMC's production capacity by AI chip designers such as Nvidia has surged dramatically, Apple's bargaining power in ensuring supply has somewhat decreased.

Cook has mentioned in the last two earnings calls of Apple that the shortage of advanced chips has led to an inability to meet market demand for iPhones and has warned that such constraints will continue into the current quarter, impacting several models of Macs.

Trump administration holds a 10% stake in Intel, the political push should not be overlooked

Behind this cooperation, the intervention of the U.S. government is crucial. The Trump administration converted nearly $9 billion in federal subsidies into Intel equity last summer, holding a 10% stake. Since then, Trump has publicly expressed his support for Intel on multiple occasions.

"The moment we got involved, Apple came on board, Nvidia came on board, and many smart people came on board."

The U.S. Secretary of Commerce, Howard Lutnick, has met with Cook, Musk, and Huang Renxun multiple times over the past year to encourage business cooperation with Intel.

Intel has previously reached cooperation with Nvidia and Musk: Nvidia invested $5 billion in Intel last September, and the two companies collaborated on custom data center CPUs for Nvidia; Musk announced the construction of a chip manufacturing plant in Texas with Intel to service Tesla and SpaceX's Terafab project.

Lip-Bu Tan reshapes Intel with sweeping reforms, turning the tide初见成效成效初现

Intel has been mired in difficulties in recent years. Over the past decade, burdened by a series of technological missteps, management changes, and failed mergers and acquisitions, Intel has fallen far behind TSMC and Samsung in the foundry sector, with external customers gradually leaving.

The current CEO, Lip-Bu Tan, replaced Pat Gelsinger, who was forced to resign, in March 2025, and initially faced setbacks—Trump publicly questioned his close ties with China and once called for his removal. However, Tan won Trump's trust with a pragmatic stance, and the government subsequently announced its stake in Intel.

Tan has been active since taking office:

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