Intel shares surged 9% in premarket trading on Thursday after President Trump announced that Apple has agreed to collaborate with Intel on chip design and manufacturing in the United States. The announcement was made via Trump’s social media platform, Truth Social, and marked a notable market reaction for Intel.
The partnership is anticipated to strengthen Intel’s position in the semiconductor industry. Trump linked this announcement to other recent successes for Intel, including previous collaborations with Nvidia and Elon Musk’s TerraFab project. The reported deal follows a Wall Street Journal report from May which indicated that Apple and Intel had reached a preliminary agreement.
Despite Intel’s significant stock increase, Apple shares rose only 0.5% in premarket trading. Trump indicated that the partnership was incentivized by an equity agreement, although specific terms were not disclosed. In his post, Trump stated, “Apple has agreed to work with Intel to design and build its chips.”
Trump also highlighted Intel’s prior achievements, including a deal with Nvidia for advanced chip production at Intel facilities, and Musk’s commitment to develop the TerraFab project, which is expected to become the largest chip-manufacturing plant in collaboration with Intel.
Last year, the U.S. government converted approximately $8.9 billion of CHIPS Act and Secure Enclave funding into a 9.9% equity position in Intel, acquired at $20.47 per share. Trump claimed this investment has since appreciated significantly, although independent estimates suggest the actual increase is closer to $43 billion based on recent share prices.
Market analysts suggest that securing Apple as a customer could potentially double Intel’s annual revenue run rate and transform its foundry operations into a profitable segment. Apple has historically depended on TSMC for its chip production, but ongoing supply constraints, exacerbated by the AI chip demand, have prompted Apple to seek alternative partnerships.
In May 2022, it was reported that Apple and Intel had discussions regarding Intel’s 18A node technology, intended for future iPad Pro and MacBook Air models. Recently, Intel announced that its next-generation 18A-P process had entered risk production, crucial for scaling up manufacturing.
As of now, both companies have not confirmed the details of this partnership, including chip specifications, production volumes, or contractual agreements. Trump’s remarks remain the only public acknowledgment of this collaboration.
Intel’s stock performance has improved significantly, rising over 200% this year, driven by cost-cutting measures, new customer acquisitions, and supportive federal policies.
