U.S. President Donald Trump knows exactly how to shape a public narrative. Now, he appears to have used his influence to bring two massive technology companies together. According to recent reports, President Trump played a direct role in convincing Apple to sign a brand-new chip manufacturing deal with Intel. This unexpected partnership will likely deliver significant financial benefits to the tech giant over the next few years.
The Wall Street Journal broke the news about this preliminary agreement between the two companies. During a recent meeting with Apple leader Tim Cook, President Trump pushed hard for the partnership. He told Cook that he really likes Intel and its current business direction. The President also pointed out that the federal government made tens of billions of dollars from its financial stake in the chipmaker. His strong words seemingly convinced Apple to explore the new deal.
While the two companies keep the exact details secret, experts know how the manufacturing process will work. Apple will continue to design its own custom processors using ARM technology. Instead of building the chips itself, Apple will send those final designs to Intel. Intel will then use its advanced factory assembly lines actually to build the physical chips. It currently uses this same strategy with its main supplier, TSMC.
Tech experts already have a good idea about which Apple devices will feature these new Intel-made chips. Apple plans to use Intel’s advanced 18A-P manufacturing process to build its entry-level M-series computer chips. Customers will likely see these specific computer chips hit store shelves in 2027. One year later, in 2028, Apple plans to put these Intel-made chips inside its standard, non-Pro iPhone models.
This is pretty surprising…
— Jukan (@jukan05) May 8, 2026
Apparently, DJT himself told Apple to use Intel, saying, “I like Intel.” per WSJ pic.twitter.com/Hk4IPBoqgU
Apple never jumps into a new manufacturing deal without running heavy tests first. The company reportedly received early test kits from Intel a few months ago. Apple engineers currently use these kits to evaluate how well the 18A-P factory process actually works. Industry insiders also believe Apple will use special Intel packaging technology for an upcoming custom chip project called Baltra. Apple expects to launch the Baltra project in either 2027 or 2028.
Apple desperately needs this new partnership with Intel because its current deal with TSMC is too expensive. Right now, Apple faces a serious hit to its profit margins. The company recently asked TSMC to restart production of the older A18 chips. Apple needs these specific A18 chips to power the current generation of the MacBook Neo. This sudden change in factory plans forces Apple to pay a heavy premium to TSMC.
Because of these rising costs, Apple might completely change its strategy for the next version of the MacBook Neo. Tech analysts suggest Apple could simply buy ready-made chips directly from Intel. Rumors indicate Apple might power the next-gen MacBook Neo using Intel’s Core Series 3 chips. Intel currently calls these new chips by their secret code name, Wildcat Lake. While Apple refuses to confirm this plan, the move makes perfect financial sense.
From a pure business perspective, partnering with Intel saves Apple a massive amount of cash. Factory pricing reports show a huge difference between the two suppliers. Intel currently charges 25 percent less for its 18A wafers than TSMC charges for its comparable 2-nanometer wafers. Getting a 25 percent discount on millions of computer chips will instantly boost Apple’s quarterly profits.
This massive discount also gives Apple much-needed breathing room in a tough economy. The entire technology industry is currently suffering from severe inflation in memory chips. As memory gets more expensive, companies usually have to raise the final price of their phones and laptops. By saving money on the main processor chips from Intel, Apple can absorb rising memory costs without making customers pay more.
Finally, the Intel deal fixes two major long-term problems for Apple. First, building chips with Intel protects Apple from sudden supply chain delays and international trade tariffs. Second, the deal destroys the massive monopoly that TSMC currently holds over the chip market. For years, TSMC could charge whatever price it wanted because Apple had nowhere else to go. Now, Apple has a cheaper backup plan.
Every single one of these massive benefits depends entirely on Intel doing its job right. Intel must prove that its new 18A factory process remains completely stable. The company has to manufacture millions of chips without errors or shipment delays. If Intel can deliver reliable chips on time, Apple will enjoy lower costs, better profits, and a much safer supply chain for the rest of the decade.
