In a significant development for the tech and semiconductor industries, Apple and Intel have struck a preliminary agreement under which Intel will manufacture some of the chips that power Apple devices. The news, reported by Robbie Whelan and Rolfe Winkler for The Wall Street Journal on May 8, 2026, marks a notable comeback effort for Intel and highlights ongoing efforts to strengthen domestic U.S. chip production. Deal Details and Background According to people familiar with the matter, intensive talks between the two companies have been underway for more than a year, culminating in a formal preliminary deal in recent months. Bloomberg had previously reported on the discussions. It remains unclear exactly which Apple products will use Intel-manufactured chips—Apple ships over 200 million iPhones annually, along with millions of iPads and Macs—but the partnership represents a diversification of Apple’s supply chain. Both companies declined to comment officially. The Role of the Trump Administration The U.S. government played a pivotal role in facilitating the deal. Last summer, the Trump administration converted nearly $9 billion in federal grants into a roughly 10% stake in Intel. Commerce Secretary Howard Lutnick has been actively engaging with tech leaders, including Apple’s Tim Cook, to encourage partnerships with Intel. President Trump personally advocated for the collaboration in a White House meeting with Cook. This fits into a broader pattern: Intel has now secured partnerships with Apple, Nvidia (which invested $5 billion and will use Intel for custom data center CPUs), and Elon Musk’s companies (for a new Texas chip plant serving Tesla, xAI, and SpaceX). Trump has publicly praised the developments, noting in January that government backing helped attract major partners: “As soon as we went in, Apple went in, Nvidia went in, a lot of smart people went in.” Intel’s Turnaround Efforts Under Lip-Bu Tan Intel’s foundry business (which manufactures chips for itself and external clients) had struggled for years due to technical setbacks and lost customers. New CEO Lip-Bu Tan, who took over in spring 2025, has focused on revitalization—investing in advanced processes like 14A, reshaping leadership (including hiring ex-TSMC talent), and pursuing high-profile deals. Following the U.S. government investment, Intel’s stock rose sharply. On the day of the WSJ report, shares jumped 7.5% to near record highs around $118. Apple’s Supply Chain Pressures Apple has long relied heavily on Taiwan Semiconductor Manufacturing Company (TSMC) for its custom Arm-based chips (used in iPhones, iPads, and Macs since the 2020 shift away from Intel-designed processors). Surging AI demand from companies like Nvidia has strained TSMC capacity, leading to supply constraints for Apple. Tim Cook has cited chip availability issues on recent earnings calls, affecting iPhone and Mac shipments. This deal gives Apple an additional supplier and supports U.S. efforts to reduce reliance on overseas manufacturing for advanced chips. TSMC remains far ahead in manufacturing prowess compared to Intel or Samsung, but the agreement provides Apple with more options for older, non-cutting-edge chips. Broader Implications • For Intel: A major validation of its foundry ambitions and a boost to its efforts to compete globally. • For Apple: Greater supply chain resilience amid geopolitical tensions and capacity crunches. • For America: Progress toward bringing advanced chip manufacturing back home, aligning with national security and economic goals. MacDailyNews Note: This story is still developing, as the full scope of the Apple-Intel collaboration (e.g., specific processes or products) has not been disclosed. Support MacDailyNews at no extra cost to you by using this link to shop at Amazon. The post Apple inks ‘preliminary chip-making agreement’ with Intel: A major step in American Semiconductor Revival appeared first on MacDailyNews. You're currently a free subscriber to MacDailyNews. For the full experience, upgrade your subscription.
|
