The reported partnership strengthens America's semiconductor ambitions and gives Intel a major boost in its battle to regain manufacturing leadership.
Intel shares surged on Thursday after U.S. President Donald Trump announced that Apple will work with the chipmaker to design and manufacture chips in the United States. The move could mark one of Intel's biggest foundry wins in years and supports Washington's push to expand domestic semiconductor production.
Key Details
Trump revealed the agreement in a post on Truth Social, stating that Apple had agreed to work with Intel to build its chips in America.
The partnership would help Apple diversify its manufacturing options as demand for advanced chip production continues to rise. Apple currently relies heavily on Taiwan-based TSMC, whose facilities are also serving major AI chip developers, including Nvidia and AMD.
Reports of an Apple-Intel foundry deal have circulated since May, when the Wall Street Journal said the two companies had reached a preliminary agreement after more than a year of discussions.
The announcement follows Intel's confirmation this week that its next-generation 18A manufacturing technology has entered initial production. Trump also highlighted previous agreements involving Nvidia and Elon Musk's planned TeraFab project, both tied to Intel's manufacturing capabilities.
The U.S. government currently holds a 10% stake in Intel and has pledged roughly $10 billion to support the expansion of domestic chip manufacturing facilities.
Market Reaction
Intel shares jumped about 6% in premarket and overnight trading following Trump's announcement, extending gains that have already tripled the stock's value this year.
Apple shares edged up around 0.6%, while investors viewed the agreement as another sign of growing momentum behind U.S.-based semiconductor production.
Why It Matters
For traders, the deal strengthens Intel's position as a foundry provider and could reduce Apple's dependence on overseas manufacturing. It also highlights the growing role of government-backed initiatives in reshaping global chip supply chains.
Investors will now watch for confirmation from Apple and Intel, details on which chips may be produced, and whether Intel can successfully scale its 18A manufacturing technology to meet growing demand.
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Sources: Reuters & Yahoo Finance
Time: 1:30 PM EEST
