Trump announces Apple-Intel chip partnership to manufacture in the US
Intel shares jump 6.5% in premarket trading as the deal signals a major shift in Apple's manufacturing strategy
President Donald Trump announced Thursday that Apple has agreed to partner with Intel to design and manufacture chips in the United States, a move that would significantly diversify Apple's chip supply chain away from its heavy reliance on Taiwan's TSMC.
Trump made the announcement in a Truth Social post. Apple currently depends on TSMC for the bulk of its advanced chip production, but TSMC's manufacturing capacity is under intense pressure from AI chipmakers including Nvidia and AMD. A partnership with Intel gives Apple access to additional domestic chip capacity while reducing its exposure to geopolitical risks surrounding Taiwan.
Intel shares rose around 6.5% in premarket trading on the news, extending what has already been a roughly threefold gain for the stock so far this year. The Wall Street Journal had reported in May that Apple and Intel had reached a preliminary chip-making agreement following more than a year of discussions. Intel also announced earlier this week that its next-generation 18A manufacturing technology had entered initial production, a milestone the company said was driven by strong processor demand.
The deal fits squarely within the Trump administration's broader push to onshore semiconductor production and reduce US dependence on foreign suppliers, particularly China. Last year, the administration took a 10% stake in Intel and committed roughly $10 billion to help build and expand American chip factories, a position that has since grown to be worth more than $50 billion. Trump said at the time he "should have asked for more."