Trump Says Apple to Source Chips From Intel as Cook Warns of Higher Device Prices
US President Donald Trump has announced that technology giant Apple will begin sourcing chips manufactured in the United States through a new arrangement with Intel, as concerns grow over rising semiconductor costs.
In a post shared on his Truth Social platform, Trump stated that Intel had reached an agreement with Apple to produce computer chips domestically, describing the move as a significant step toward strengthening America’s semiconductor industry.
According to the president, expanding chip design and manufacturing within the United States remains a strategic priority aimed at reducing dependence on overseas production and strengthening national technological capabilities.
The announcement triggered a positive reaction from investors, with Intel shares rising sharply in pre-market trading. The company, however, declined to provide further details regarding the reported agreement.
The development comes at a time when Apple is facing mounting pressure from increasing component costs. Earlier this week, Apple Chief Executive Officer Tim Cook warned that higher prices for memory and storage chips are making it increasingly difficult for the company to absorb rising production expenses.
Cook indicated that while Apple has attempted to shield consumers from the impact of these cost increases, the company may eventually have to pass some of those expenses on to customers through higher product prices.
Industry analysts have linked the surge in chip prices to growing demand from artificial intelligence applications, which require large quantities of advanced memory and processing components. The rapid expansion of AI infrastructure has intensified competition for semiconductor supply worldwide.
Apple currently relies heavily on manufacturing partners in Taiwan for many of the processors used in its iPhones, iPads and Mac computers. A shift toward Intel-produced chips in the United States could help diversify the company’s supply chain while supporting broader efforts to expand domestic semiconductor production.
The reported agreement also aligns with previous initiatives by the Trump administration to strengthen the American chipmaking sector. Last year, the US government invested billions of dollars in Intel as part of efforts to boost domestic research, manufacturing capacity and supply-chain security.
Trump highlighted the growth in Intel’s market value since that investment, suggesting the government’s stake in the company has appreciated significantly over the past several months.
The potential partnership between Apple and Intel underscores the growing importance of semiconductor production in global technology competition, particularly as demand for AI-driven computing continues to accelerate and place additional strain on chip supply chains worldwide.
