In a post on Truth Social this Thursday, former U.S. President Donald Trump stated that Apple (AAPL.US) has agreed to collaborate with Intel (INTC.US) to design and produce its chips within the United States.

This partnership with Intel assists Apple in diversifying its manufacturing base while pursuing additional chip production capacity. The iPhone maker is heavily reliant on Taiwan Semiconductor Manufacturing Company (TSM.US), whose advanced production lines are currently facing immense demand from AI chip manufacturers such as NVIDIA and AMD (AMD.US).

Following over a year of discussions, Intel has reached a preliminary agreement with Apple to manufacture a portion of its chips. Securing a contract from Apple provides Intel with stable demand from one of the world's largest consumer electronics companies, thereby enhancing its reputation and bolstering its manufacturing operations, which have lagged behind TSMC in recent years.

Earlier this week, Intel indicated that its next-generation manufacturing technology, 18A, has entered the initial production phase, as the chipmaker observes robust demand for its central processing units (CPUs).

Last year, the Trump administration acquired a 10% stake in Intel and announced plans to invest approximately $10 billion in the chipmaker for constructing or expanding U.S. factories.

Previously, eight months after the government's stake in Intel saw its market value increase to over $50 billion, Trump remarked that he "should have asked for more" of Intel's shares.

The current administration has been intensifying efforts to secure the supply chains for critical U.S. minerals and semiconductors, including acquiring equity stakes in companies to reduce dependency on China.