Trump Says Apple, Intel Agreed to U.S. Chip Production

President Donald Trump announced Thursday that Apple has agreed to partner with Intel on designing and building chips entirely in the United States, a move that sent Intel shares surging nearly 9 percent in premarket trading. The development comes after years of semiconductor manufacturing drifting overseas, particularly to Taiwan, under previous administrations that Trump has repeatedly criticized for neglecting domestic industry.

Trump detailed the arrangement on Truth Social, stating that Apple would work with Intel to design and produce its chips on American soil. He pointed to earlier efforts by his administration to bring Nvidia into similar arrangements with Intel and noted a separate project involving Elon Musk's TerraFab, which he described as the world's largest chip factory built in collaboration with Intel's technology team. The announcements follow reports from May that Apple and Intel had reached a preliminary agreement after more than a year of discussions facilitated by Commerce Secretary Howard Lutnick.

Intel's foundry business has long struggled to attract major external customers while competing against Taiwan Semiconductor Manufacturing Company. The company had largely missed the early wave of AI-driven demand due to manufacturing delays, but new leadership under CEO Lip-Bu Tan and investments tied to the Trump administration appear to have shifted momentum. Intel's market capitalization now stands above $600 billion after a 464 percent gain over the past year. Apple, which shifted away from Intel processors years ago in favor of its own designs produced mainly by TSMC, now seeks additional capacity amid rising demand for advanced chips.

Analyst Ming-Chi Kuo reported last month that testing of systems-on-chip built on Intel's 18A-P process had already begun, with volume production slated for 2027. The Trump administration previously took a 10 percent stake in Intel and committed roughly $10 billion toward expanding U.S. facilities. Intel confirmed this week that its latest 18A technology has entered initial production.

Neither Apple nor Intel has issued formal confirmation of the latest agreement. The Taipei Representative Office in the United Kingdom also declined immediate comment. For years, U.S. policy allowed advanced chipmaking capacity to concentrate abroad, creating vulnerabilities in supply chains that became evident during recent global disruptions. Trump's public push frames the Apple Intel partnership as part of a broader effort to reverse that trend and anchor critical manufacturing at home.

The arrangement would give Intel a high-profile customer to validate its foundry operations while providing Apple with diversified production options beyond its heavy reliance on TSMC. Early indications from Wall Street suggest investors view the news as a concrete step toward rebuilding domestic semiconductor strength rather than another round of aspirational promises.