Apple and Intel to Design and Manufacture Chips in the US

President Donald Trump announced on June 19, 2026, that Apple has agreed to partner with Intel to design and manufacture semiconductor chips within the United States. The agreement focuses on expanding domestic chip production and reducing dependence on overseas foundries, according to the announcement.

The partnership marks a strategic shift for Apple, which has historically relied on the Taiwan Semiconductor Manufacturing Company (TSMC) for the production of its A-series and M-series processors. Under the new arrangement, Intel will leverage its U.S.-based fabrication plants to produce chips designed for Apple hardware.

How will Intel manufacture Apple’s chips?

Intel will utilize its foundry services model to execute the agreement. This approach separates Intel’s own product design from its manufacturing operations, allowing it to act as a third-party manufacturer for outside clients like Apple.

Intel has invested billions into expanding its domestic footprint, including the construction of new semiconductor fabs in Arizona and Ohio. These facilities are designed to support advanced process nodes, which are the technical specifications that determine how many transistors can fit on a chip. Smaller nodes generally result in faster, more power-efficient processors.

The collaboration involves both the design and the manufacturing phases. While Apple typically maintains strict control over its proprietary chip architecture, the agreement stipulates that Intel will assist in the domestic production of these designs.

Why is Apple shifting production to the U.S.?

The move addresses geopolitical risks associated with the concentration of semiconductor manufacturing in East Asia. Most of the world’s most advanced chips are currently produced in Taiwan, leaving global supply chains vulnerable to regional instability.

By diversifying its manufacturing base to include Intel’s U.S. facilities, Apple reduces the risk of catastrophic supply chain disruptions. This alignment follows broader U.S. government efforts to repatriate critical technology production through initiatives like the CHIPS and Science Act.

Industry analysts note that this partnership provides Intel with a high-volume, prestigious client that can help stabilize its foundry business. For Apple, it provides a domestic alternative to TSMC without requiring the company to build its own fabrication plants, which cost tens of billions of dollars each.

How does this compare to Apple’s current supply chain?

Apple’s current model relies almost exclusively on TSMC for its most advanced nodes. This relationship has allowed Apple to lead the industry in energy efficiency and performance per watt.

The Intel partnership introduces a dual-source strategy. This contrast is evident in the business models: TSMC is a pure-play foundry that only manufactures chips for others, while Intel is an integrated device manufacturer (IDM) that both designs and makes its own chips. Apple’s move to Intel signifies a trust in Intel’s ability to separate these two functions effectively.

The transition will likely happen in phases. It’s improbable that Apple will move all production immediately. Instead, the company may start by moving less critical components or specific product lines to Intel’s U.S. plants before migrating its flagship processor lines.

What happens next for U.S. chip production?

The agreement serves as a test case for whether U.S. foundries can meet the rigorous volume and precision requirements of a company the size of Apple. Success in this partnership could encourage other major technology firms to shift their production back to the United States.

Further details regarding the specific process nodes Intel will use for Apple, as well as the timeline for the first shipment of U.S.-made Apple chips, have not yet been released.