A potential partnership between Intel and Apple could give a major boost to US semiconductor manufacturing. According to a report published on Friday, Intel has reached a preliminary agreement to manufacture some chips for Apple devices.
The report said both companies had been in intensive discussions for more than 1 year and finalised a formal preliminary deal in recent months.
Following the news, Intel shares jumped 15%, while Apple stock rose around 1.7% during afternoon trading.
Securing a deal with Apple would provide Intel with stable demand from one of the world’s biggest consumer electronics companies. It would also strengthen Intel’s contract manufacturing business, which has struggled to keep pace with TSMC in recent years.
The report stated that the US government played a key role in encouraging discussions between the 2 companies. The government became Intel’s largest shareholder last year under a deal linked to CEO Lip-Bu Tan.
An administration official said the government has been working to support Intel because it remains a major US semiconductor producer.
“In general, we want to and have been helping Intel,” the official said.
“We have been trying to drum up business for Intel.”
The possible partnership also supports the Trump administration’s efforts to increase chip production within the US and strengthen domestic manufacturing capabilities.
The report did not specify which Apple products could use Intel-manufactured chips. Both companies declined to comment.
For Apple, the deal could help reduce dependence on TSMC, whose manufacturing lines are under growing pressure from AI chipmakers such as Nvidia and AMD. Apple CEO Tim Cook recently said iPhone sales were affected by supply constraints at its manufacturing partner.
The move would also reconnect the 2 companies years after Apple shifted away from Intel processors in Mac computers and adopted its own custom silicon.
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