Key Highlights
- President Trump revealed via Truth Social that Apple has committed to collaborating with Intel on domestic chip design and production.
- Intel shares climbed more than 7% in premarket hours, reaching $129.84āa potential record high for the company.
- The Wall Street Journal initially disclosed the Apple-Intel preliminary agreement in May following extended negotiations spanning over a year.
- Intel’s valuation has approximately quadrupled since the US government acquired a 10% ownership position last August.
- Official confirmation from Apple or Intel regarding the partnership remains pending.
Intel (INTC) shares experienced a dramatic surge exceeding 7% during premarket trading Thursday following President Trump’s Truth Social declaration that Apple has committed to a partnership with Intel for designing and manufacturing semiconductors on American soil.
During premarket activity, Intel reached $129.84 per share. Should this price level sustain throughout regular trading, it would represent a historic milestone for the California-based semiconductor manufacturer.
In his statement, Trump declared: “I decided to help Intel because we need to design and build our Chips right here in America.” His message positioned the Apple arrangement as a component of a comprehensive strategy to reestablish semiconductor manufacturing within United States borders.
The revelation didn’t arrive completely unexpectedly. In May, the Wall Street Journal disclosed that Apple and Intel had established a preliminary framework for Intel to produce certain chips destined for Apple products, culminating from negotiations extending beyond twelve months.
As of publication, neither Apple nor Intel had issued official statements confirming the collaboration. Both corporations remained unavailable for comment during non-business hours.
Apple’s Strategy to Diversify Manufacturing Sources
Apple currently depends predominantly on TSMC for semiconductor fabrication. However, TSMC’s cutting-edge manufacturing facilities face intense demand from artificial intelligence chip producers such as Nvidia and AMD, creating fierce competition for limited production capacity.
Establishing a relationship with Intel provides Apple with an alternative manufacturing avenue and diminishes its reliance on a single supplier. From Intel’s perspective, securing Apple as a client delivers steady, substantial volume orders from a leading global consumer technology corporation.
Trump highlighted that Nvidia and Elon Musk’s Terrafab had also previously committed to collaborations with Intel, establishing the semiconductor manufacturer as an emerging center for American-based chip production.
Intel’s Foundry Transformation
Intel’s fabrication capabilities have lagged behind TSMC for an extended period. This technological disadvantage made the company’s foundry aspirations challenging to realizeāuntil now.
Earlier this week, Intel announced that its advanced manufacturing process, designated 18A, has commenced initial production runs. The corporation reported robust demand for its core processor lineup.
Government backing has significantly accelerated Intel’s turnaround. Last year, the Trump administration acquired a 10% equity position in Intel while pledging approximately $10 billion toward constructing or expanding domestic manufacturing facilities.
Trump subsequently remarked he “should have asked for more” equity, eight months after the government’s Intel holdings appreciated to exceed $50 billion in value.
Intel shares have now appreciated roughly fourfold since the government investment announcement last August. Thursday’s premarket movement extended an approximately threefold gain already achieved year-to-date.
Apple stock declined approximately 1.1% in premarket trading following the announcement, while AMD registered modest gains around 1%.
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