A recent report from The Wall Street Journal indicates that the U.S. government may have encouraged Apple to utilize Intel's manufacturing capabilities for its chips. This alleged urging occurred around the same time the government made a substantial $9 billion investment in Intel.
According to the report, Apple CEO Tim Cook met with White House officials last summer to discuss proposed tariffs on semiconductor imports. Apple ultimately secured an exemption from these tariffs, reportedly in exchange for a commitment to invest $100 billion in U.S. manufacturing. However, the WSJ cites sources suggesting that President Donald Trump and Commerce Secretary Howard Lutnick also pressed Cook to use Intel's facilities for chip production.
Around the same period, the U.S. government converted $9 billion in federal grants into a 10% stake in Intel, becoming its largest shareholder. While Trump announced in June of this year that Apple had agreed to produce chips with Intel in the U.S. via a social media post, neither company has formally confirmed the arrangement beyond a preliminary agreement.
If the reports are accurate, Apple intends to have Intel manufacture chips for its Mac laptops and iPhones. This move would diversify Apple's supply chain beyond TSMC, which is currently facing capacity constraints due to high demand for AI servers. Intel's stock performance has seen significant growth over the past year, with its CEO reportedly visiting Washington monthly for discussions with Commerce Department officials and maintaining regular contact with Lutnick. The U.S. government's involvement, including regular briefings from Intel executives, appears deep, potentially bolstering Intel's financial standing and strategic position.
The arrangement aligns with the administration's initiative to boost domestic chip manufacturing. For Apple, securing manufacturing capacity in the U.S. could help it avoid potential tariffs, while the reported federal investment in Intel suggests a strategic financial bet for all parties involved.