Trump confirms Apple-Intel partnership to make chips: Will it affect smartphone prices?
US President Donald Trump confirmed that Apple will partner with Intel to design and manufacture its chips in the US; It’s a move that will provide a secondary option beyond long-time partner Taiwan Semiconductor Manufacturing Co (TSMC).
This is fueling speculation about the potential impact of the deal on Apple products in particular, although Apple’s outgoing CEO Tim Cook recently said price increases were “inevitable” as the situation around memory chips became “unsustainable.”
As the race for artificial intelligence and advanced computing accelerates, the semiconductor war is entering an entirely new era; Many reports point to shortages in memory chip supplies that could make electronic devices more expensive.
Memory chips are key components of smart devices such as mobile phones, but the explosion in artificial intelligence (AI) has also driven up their prices in recent months. BBC reported.
Along with growing demand for artificial intelligence, the war in Iran has also disrupted global supplies of helium, a gas vital in making semiconductors, and increased the cost of computer chips.
According to research firm Omdia, the global average selling price of smartphones is expected to increase by nearly 20% in 2026, reaching an all-time high.
Omdia’s smartphone market analyst Chiew Le Xuan told the BBC that Apple’s new phones could be up to $150 more expensive than the iPhone 17s as the firm is expected to upgrade its specs to support new AI features.
Many have claimed on social media that the Apple-Intel partnership could also impact pricing, supply timelines, and the competitive dynamics of the AI and consumer device markets.
Trump announces Appel-Intel deal
Trump made the announcement on the Truth Social platform and said it was important not only to design chips but also to produce them locally.
He said the US helped Intel by purchasing a 10 percent stake in the chip maker, increasing the overall value of the company from $100 billion to $600 billion.
As a result, the US government’s share rose to over $60 billion in just nine months.
Trump wrote on TRUTH Social: “Apple agreed to work with Intel to design and manufacture its chips in America. We agreed to help Intel in exchange for 10% of its stock. Is that too much or too little?”
Price increase statement from Tim Cook
In an interview with Wall Street Journal (WSJ)Tim Cook did not say when prices would increase or which products would be affected.
It is not clear whether the price increases will affect the iPhone 18, which is expected to be released in September.
“We are doing our best to reduce the massive increases being passed on to us and trying to protect our customers from the increases, but the situation has become unsustainable,” Cook told the WSJ. he said.
Cook, who will be replaced by John Ternus as Apple’s CEO in September after 15 years in office, said, “Supply is decreasing at a time when consumers want devices and memory makers are citing big price increases.”
“We absolutely need memory pricing and supply to get back to reasonable levels for consumer products. That’s the bottom line,” he added.
Experts say that this development points to a strategic change for Apple towards a more diversified supply chain where domestic foundries are active, while Intel aims to strengthen its place in contract manufacturing.
The partnership with Intel helps Apple diversify its manufacturing base as it searches for additional chip capacity.
The iPhone maker relies heavily on TSMC, whose advanced production lines are in high demand from AI chipmakers such as Nvidia and AMD.
Who will produce Apple’s chips now?
Reports had previously claimed that Intel would join TSMC in the production of certain chips for Apple devices.
The report stated that Apple did not switch completely but diversified its supplier base to reduce supply chain risks, increase negotiating power and secure domestic manufacturing capabilities at Intel’s US facilities.
What does the deal mean for Apple and Intel?
A deal with Intel offers an alternative to Apple, ending Taiwan Semiconductor Manufacturing Corporation’s (TSMC) monopoly since Apple’s foray into chip design.
The Apple deal would also be a big win for Intel, which has struggled for years to keep up with rivals and has been working to attract major customers to its foundry business, UpStox reported.
Impact and cost on the supply chain: What are people saying on social media?
Jean-Pierre Palomba-Marin from the Palomba Consulting Group Telegram Channel (Think Thanks) said: LinkedIn He noted that TSMC’s operations are primarily located in Taiwan, which faces the risk of a Chinese invasion that could disrupt China’s chip flow.
“AI chip demand is also taking up a growing share of TSMC’s chip manufacturing capacity,” he added.
Meanwhile, an eminent expert in the fields of Blockchain, Project Management, NGOs, Innovation and IT, Dr. Zayed AlHemairy, previously in question Intel’s partnership with Apple could mean:
• Reduced dependence on a single supplier.
• Stronger competition in the chip manufacturing market.
• Intel’s return to the global semiconductor race.
• A major shift in global technology supply chains.
Others are open LinkedIn He also said: “This move may impact Apple’s supply chain flexibility, cost dynamics and speed to market across devices.”
Market impact
According to Bloomberg, Intel Corp.’s shares rose after U.S. President Donald Trump said the chip maker was working with Apple Inc. to design and produce semiconductors domestically. It rose more than 9 percent in premarket trading Thursday after it said it would work with .
