Apple’s chip strategy appears to be shifting in a significant way. According to a new report from the Wall Street Journal, Apple plans to have Intel manufacture chips for both future Mac laptops and iPhones in the United States, a move tied to a much bigger story involving semiconductor tariffs and behind-the-scenes negotiations with the White House.
Apple Still Designs Its Own Chips — Intel Just Builds Them
It’s important to clarify what this deal actually involves. Apple isn’t handing over chip design to Intel. The company will continue designing its own silicon in-house, the same way it currently does for its A-series and M-series chips. What changes is manufacturing: Intel is expected to produce at least some of these Apple-designed chips domestically, essentially taking on a role currently filled almost entirely by Taiwan’s TSMC.
This would mark one of the more significant shifts to Apple’s chip supply chain in recent years. Apple has relied heavily on TSMC as its sole manufacturer for Apple Silicon, and diversifying that manufacturing base has reportedly become more of a priority following supply constraints tied to surging AI chip demand.
How Tariff Pressure Led to This Deal
According to the Wall Street Journal’s reporting, this arrangement traces back to closed-door discussions last summer between Apple CEO Tim Cook and the Trump administration. At the time, the administration was considering imposing tariffs of up to 100 percent on semiconductor imports, a move that could have significantly increased costs on some of Apple’s most important products.
During those discussions, President Trump and Commerce Secretary Howard Lutnick reportedly raised the idea of Apple working with Intel, a company that has faced its own struggles in recent years. Apple ultimately secured an exemption from the proposed tariffs after committing to invest several hundred billion dollars more in the United States. The connection between that tariff exemption and a resulting Intel manufacturing deal had not been previously reported before this Wall Street Journal story.
Nearly a year after those initial conversations, the partnership was confirmed publicly, with Intel now expected to manufacture some upcoming Mac and iPhone chips for Apple.
Why This Could Matter for Both Companies
For Intel, landing Apple as a manufacturing customer would be a major win. The company has been working to rebuild its foundry business under new leadership, and securing production commitments from Apple, one of the most valuable companies in the world, would be a strong signal of confidence in Intel’s manufacturing capabilities going forward.
For Apple, the arrangement offers two clear benefits: it helped the company avoid a potentially costly tariff situation last year, and it gives Apple a second major chip manufacturing partner beyond TSMC, something the company has reportedly been seeking as global chip demand, particularly from the AI sector, has made securing manufacturing capacity more competitive.
The Bigger Picture
Neither Apple nor Intel has formally detailed the full scope of this arrangement, and specifics such as which chips, which product lines, and what timeline are involved haven’t been fully disclosed. Still, if the reporting holds up, it suggests Tim Cook’s Washington negotiations last year may have quietly set up a deal that benefits Apple well beyond just the immediate tariff exemption, potentially saving the company significant costs while also strengthening its long-term chip supply chain.
As with any story involving unannounced corporate agreements, further official details from Apple or Intel would help clarify exactly how this manufacturing partnership will unfold in upcoming iPhone and Mac releases.
Source: Wall Street Journal
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