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

Intel's stock jumped nearly 9 percent in premarket trading Thursday after President Donald Trump said Apple had agreed to work with the chipmaker on designing and producing semiconductors in the United States. The claim, posted on Truth Social, came as the administration continues to steer federal support toward domestic manufacturing capacity.

Trump wrote that previous administrations had allowed semiconductor production to shift overseas and that Apple would now collaborate with Intel to build chips domestically. He also referenced earlier commitments from Nvidia and Tesla to use Intel's foundry services. The announcements align with the administration's broader industrial policy, which includes a 10 percent government stake in Intel and roughly $10 billion in planned investments to expand U.S. facilities.

Neither Apple nor Intel has confirmed the latest agreement. The Wall Street Journal reported in May that the two companies had reached a preliminary understanding for Intel to manufacture some chips for Apple devices. Analyst Ming-Chi Kuo later indicated that testing of systems-on-chip built on Intel's 18A-P process was underway, with volume production potentially beginning in 2027. Commerce Secretary Howard Lutnick had reportedly met repeatedly with Apple executives over the preceding year to encourage renewed business with Intel.

Intel has spent years recovering from manufacturing delays that cost it market share to Taiwan Semiconductor Manufacturing Company. Under new leadership, the company has secured interest from Nvidia and now appears positioned to gain a major customer in Apple, whose supply chain remains heavily concentrated with TSMC. For Intel, consistent external demand would help justify the high fixed costs of its foundry business and improve the economics of its newest process technology, which recently entered initial production.

The proposed arrangement reflects ongoing efforts to reduce reliance on overseas fabrication, particularly for advanced nodes. Apple currently depends on TSMC for most of its processors, a concentration that has drawn scrutiny amid geopolitical tensions and capacity constraints created by surging AI demand. Shifting even a portion of production to Intel would give Apple additional sourcing options while providing the U.S. chipmaker with a stable revenue stream.

Execution risks remain significant. Intel must demonstrate that its 18A technology can meet Apple's performance and yield requirements at scale. Past delays have eroded customer confidence, and rebuilding that trust will take time. Federal support can lower the cost of capital, yet sustained commercial success will depend on whether Intel can deliver competitive products without repeated subsidies.

The episode also illustrates how trade and industrial policy are increasingly shaping technology supply chains. Government incentives and direct equity stakes can accelerate investment decisions, but they also tie corporate strategy more closely to political priorities. Whether the Apple-Intel partnership materializes in the volumes projected will offer an early test of how effectively these tools can reshape a sector long dominated by Asian manufacturers.