Key Highlights
- President Trump announced via Truth Social that Apple has committed to collaborating with Intel for U.S.-based chip design and production.
- Intel (INTC) shares climbed over 7% during premarket hours, reaching $129.84 — a potential record high for the company.
- Reports from the Wall Street Journal in May first disclosed the preliminary Apple-Intel agreement following extended negotiations spanning more than a year.
- Since the U.S. government acquired a 10% equity position last August, Intel shares have climbed approximately 400%.
- Official confirmation from Apple or Intel regarding the partnership remains pending.
Intel (INTC) shares experienced a significant surge of more than 7% during Thursday’s premarket session following President Trump’s Truth Social declaration that Apple has committed to a partnership with Intel for designing and manufacturing semiconductors domestically.
During premarket activity, Intel shares reached $129.84. Should this price level sustain throughout regular trading, it would represent a historic 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.” He positioned the Apple arrangement as integral to a comprehensive initiative aimed at repatriating semiconductor manufacturing to American facilities.
The revelation didn’t arrive without precedent. Earlier reporting from the Wall Street Journal in May disclosed that Apple and Intel had established a tentative manufacturing agreement for certain chips destined for Apple products, culminating from negotiations that stretched beyond twelve months.
As of publication time, neither Apple nor Intel had issued official statements confirming the collaboration. Both corporations failed to respond to inquiries submitted during non-business hours.
Apple’s Strategy to Diversify Manufacturing Partners
Apple currently maintains substantial reliance on TSMC for semiconductor fabrication. However, TSMC’s cutting-edge manufacturing facilities face significant capacity constraints driven by artificial intelligence chip producers such as Nvidia and AMD, all vying for limited production slots.
Establishing a partnership with Intel provides Apple with an alternative fabrication source while mitigating supply chain concentration risks. From Intel’s perspective, securing Apple as a client delivers steady, substantial order volumes from among the planet’s premier consumer technology corporations.
Trump highlighted that Nvidia and Elon Musk’s Terrafab had similarly committed to Intel collaborations, establishing the chipmaker as an emerging center for domestically-based semiconductor fabrication.
Intel’s Foundry Expansion Efforts
Intel’s manufacturing division has lagged behind TSMC’s capabilities for numerous years. This technological disparity has historically complicated the company’s foundry aspirations — though circumstances are shifting.
Earlier this week, Intel announced that its advanced manufacturing process, designated 18A, has commenced initial production phases. The corporation reported robust demand for its core processor products.
Federal government participation has accelerated Intel’s turnaround trajectory. Last year, the Trump administration acquired a 10% ownership stake in Intel while pledging approximately $10 billion toward constructing or expanding domestic manufacturing facilities.
Trump subsequently remarked he “should have asked for more” equity, made eight months after the government’s Intel holdings appreciated to exceed $50 billion in value.
Intel shares have appreciated roughly 400% since the government investment announcement last August. Thursday’s premarket movement extended a roughly 300% gain already accumulated throughout the current year.
Apple shares declined approximately 1.1% during premarket trading following the announcement, while AMD registered modest gains of around 1%.
