Trump confirms Apple, Intel partnership to make chips: Will it impact smartphone prices?

Published 18 June 2026 · tech

US President Donald Trump confirmed that Apple is going to partner with Intel to design and manufacture its chips in the United States -- a

US President Donald Trump confirmed that Apple is going to partner with Intel to design and manufacture its chips in the United States -- a move that would offer a secondary option beyond longtime partner Taiwan Semiconductor Manufacturing Co (TSMC). This raises speculations about the possible impact of the deal, especially on Apple products, even as Tim Cook, Apple's outgoing chief executive, said recently that price increases were "unavoidable" as the situation around memory chips had become "unsustainable". As the AI and advanced computing race accelerates, the semiconductor battle is entering an entirely new era, with several reports hinting at memory chip supply shortages that could make electronic devices more expensive. Memory chips are essential components in smart devices like mobile phones, but the boom in artificial intelligence (AI) has driven up their prices in recent months, BBC reported. In addition to rising AI demand, the war in Iran has also disrupted the global supply of helium, a gas crucial in making semiconductors, adding to the cost of computer chips. The average selling price of smartphones globally is expected to rise by around 20% in 2026 to an all-time high, according to research firm Omdia. Omdia's smartphone market analyst Chiew Le Xuan told the BBC that Apple's new phones are likely to cost up to $150 more than the iPhone 17s, as the firm is expected to upgrade their specifications to support new AI features.

Many claimed on social media that the Apple-Intel partnership could also impact pricing, supply timelines, and the competitive dynamics of the AI and consumer device markets. Trump announces Appel-Intel deal Trump made the announcement on his Truth Social platform, saying that it is not just important to design chips but to build them locally as well. He said that the US helped Intel by buying 10 per cent equity in the chip maker and the company's overall valuation has gone up to USD600 billion from USD100 billion earlier. Consequently, the US government's stake has risen to over USD60 billion in just nine months. "Apple has agreed to work with Intel to design and build its Chips in America. We decided to help Intel in exchange for 10% of their shares. Is that too much or, too little?," Trump wrote on TRUTH Social. Tim Cook on price rise In an interview with the Wall Street Journal (WSJ), Tim Cook did not say when prices would rise or which products would be affected. It is also unclear whether the price hikes will affect the iPhone 18, which is expected to be launched in September. "We're doing our best to mitigate the huge increases that are being passed to us, and we've been trying to shield our customers from the increases, but the situation has become unsustainable," Cook told the WSJ.