Apple Taps Intel for Some Custom Chip Manufacturing

Apple will outsource part of its custom chip production to Intel. The two companies have been negotiating for over a year on manufacturing some of the chips for Apple devices at Intel's semiconductor production facilities, and have reportedly finalized the details of the agreement in recent months. However, it is not yet clear which specific types of chips will be produced by Intel.

The agreement was influenced by support from the Donald Trump administration. Then-Commerce Secretary Howard Rutnik contacted Apple CEO Tim Cook and others to persuade them to cooperate with Intel, and President Trump himself recommended that Cook work with Intel.

The US government invested approximately $9 billion in federal subsidies to Intel last year, through which the US government holds about a 10% stake in Intel.