WASHINGTON D.C.: President Donald Trump said Apple has agreed to work with Intel on designing and manufacturing chips in the United States, a move that could provide a major boost to the American chipmaker as it seeks to revive its business and expand its role in advanced semiconductor production.

The partnership would give Intel access to one of the world's largest technology companies, potentially strengthening its manufacturing credentials and providing a steady source of demand as it competes with Taiwan's TSMC, the dominant contract chipmaker.

For Apple, the arrangement could help diversify its supply chain and increase access to chip production capacity at a time when demand for advanced semiconductors has surged, driven largely by artificial intelligence applications.

Apple and Intel did not immediately respond to requests for comment.

Intel shares rose 7% following Trump's announcement and were on track to extend gains that have already seen the stock more than triple in value this year. Apple shares were up 0.8%.

According to Trump, the agreement is part of broader efforts to support Intel, in which the U.S. government holds a 10% stake. The president said he has also encouraged deals involving companies such as Nvidia and Tesla.

The Wall Street Journal reported in May that Intel had reached a preliminary agreement to manufacture some chips for Apple after more than a year of discussions. Trump did not specify which chips would be produced under the arrangement.

Intel was Apple's primary supplier of processors for Mac computers for roughly 15 years before Apple transitioned to its own M-series chips in 2020. Those chips are manufactured by TSMC and have been widely credited with helping improve Mac performance and boosting sales.

The reported partnership comes as Intel continues efforts to rebuild its manufacturing business and attract major customers.

In April, Intel secured Tesla as the first major customer for its next-generation 14A manufacturing process, which is expected to enter mass production in 2029.

The company has also drawn attention from the Trump administration. Last year, Trump called for Intel CEO Lip-Bu Tan to resign over his ties to China before later backing a deal that made the U.S. government the largest shareholder in the company.

Trump subsequently remarked that he "should have asked for more" of a stake in Intel after the value of the government's holding exceeded $50 billion.

The administration has intensified efforts to strengthen domestic supply chains for critical technologies, including semiconductors and minerals, while reducing dependence on foreign manufacturing and Chinese suppliers.