This partnership with Intel allows Apple to broaden its manufacturing capabilities as it seeks to increase chip production. The iPhone manufacturer is heavily dependent on TSMC, whose advanced production facilities are in high demand from AI chip producers like Nvidia and AMD.
According to a report from the Wall Street Journal in May, Intel reached a preliminary agreement to produce some chips for Apple following over a year of negotiations.
Neither Apple nor Intel responded to a request for comments from Reuters outside of normal business hours.
An agreement with Apple ensures Intel a consistent demand from one of the largest consumer electronics firms globally, enhancing its reputation and revitalizing its manufacturing operations, which have fallen behind TSMC in recent years.
Earlier this week, Intel announced that its new generation of manufacturing technology, 18A, has begun initial production, driven by strong demand for its central processors.
Last year, the Trump administration acquired a 10% stake in Intel and revealed plans to invest around $10 billion in the company to build or expand factories in the U.S.
Trump stated that he “should have asked for more” equity in Intel, eight months after the government’s stake grew to be valued at over $50 billion.
The administration has been increasing efforts to secure U.S. supply chains for critical minerals and semiconductors, which includes acquiring equity in companies to reduce reliance on China.
