Apple has agreed to use Intel's manufacturing facilities for some of its chips, following pressure from the Trump administration. The U.S. government converted $9 billion in federal grants into a 10% stake in Intel, becoming its largest shareholder, and facilitated deals with Nvidia and SpaceX. This marks a significant government intervention in the semiconductor industry, potentially reshaping global chip manufacturing dynamics and strengthening U.S. supply chain resilience. It also highlights the strategic importance of reviving domestic chip production amid geopolitical tensions with China. The $9 billion conversion came from CHIPS Act funds, and Intel's new CEO Lip-Bu Tan meets monthly with Commerce officials. Intel's stock has tripled since March 2025, and the company's foundry services have secured major customers like Nvidia and SpaceX.
Background
The CHIPS and Science Act of 2022 allocated $52.7 billion to boost domestic semiconductor manufacturing and research. Intel, once a dominant chipmaker, has struggled to keep pace with TSMC in advanced manufacturing. Its foundry services unit, launched in 2021, aims to offer external customers access to Intel's fabrication technology. The Trump administration's actions continue bipartisan efforts to secure U.S. chip supply chains.