Key Highlights
- President Trump revealed on Truth Social that Apple has committed to collaborating with Intel on U.S.-based chip design and production.
- Intel shares climbed more than 7% during premarket hours, reaching $129.84 — a potential record high for the chipmaker.
- Reports of preliminary Apple-Intel discussions first emerged in the Wall Street Journal last May following extended negotiations spanning over a year.
- Intel’s valuation has approximately quadrupled since the U.S. government acquired a 10% ownership position in August of last year.
- Official confirmation from either Apple or Intel regarding the partnership remains pending.
Shares of Intel (INTC) jumped over 7% during premarket trading Thursday following President Trump’s social media disclosure that Apple has entered into a partnership with Intel for designing and manufacturing semiconductors on American soil.
During premarket activity, Intel shares reached $129.84. Should this price level sustain throughout regular trading hours, it would represent a new peak for the California-based semiconductor manufacturer.
In his Truth Social post, Trump stated: “I decided to help Intel because we need to design and build our Chips right here in America.” His message positioned the Apple agreement as a component of wider efforts to restore semiconductor manufacturing to domestic facilities.
The revelation wasn’t completely unexpected. Back in May, the Wall Street Journal disclosed that Apple and Intel had arrived at a tentative arrangement for Intel to produce certain chips intended for Apple products, after negotiations that extended beyond twelve months.
As of publication, neither Apple nor Intel has issued official statements verifying the collaboration. Both organizations remained unreachable for commentary outside standard operating hours.
Apple’s Strategy to Diversify Chip Manufacturing
Currently, Apple depends predominantly on TSMC for semiconductor fabrication. However, TSMC’s cutting-edge production facilities face mounting strain from artificial intelligence chip producers such as Nvidia and AMD, all vying for identical manufacturing capacity.
Establishing a partnership with Intel provides Apple an alternative production avenue while diminishing reliance on a single supplier. From Intel’s perspective, securing Apple as a client delivers steady, substantial order volume from one of the planet’s premier consumer technology corporations.
Trump highlighted that Nvidia and Elon Musk’s Terrafab had also previously committed to Intel collaborations, establishing the semiconductor company as an expanding center for American chip production.
Intel’s Foundry Expansion Efforts
Intel’s fabrication division has lagged behind TSMC for numerous years. This performance gap has made the company’s foundry objectives challenging to execute — until the recent shift.
Earlier in the week, Intel announced that its upcoming manufacturing platform, designated as 18A, has commenced early-stage production. The company reported robust interest in its core processor offerings.
Federal government participation has accelerated Intel’s turnaround trajectory. During the previous year, the Trump administration acquired a 10% equity position in Intel and pledged approximately $10 billion toward constructing or enhancing domestic manufacturing plants.
Trump subsequently remarked he “should have asked for more” equity, eight months after the government’s Intel holdings increased to exceed $50 billion in value.
Intel shares have now appreciated roughly fourfold since the government investment announcement last August. Thursday’s premarket movement continued a nearly threefold rally already recorded year-to-date.
Apple stock declined approximately 1.1% in premarket trading following the announcement, while AMD registered modest gains of about 1%.
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