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

President Donald Trump announced on his Truth Social platform Thursday that Apple has agreed to partner with Intel to design and build chips in the United States, prompting an immediate 9 percent surge in Intel shares during premarket trading. The claim comes as Intel continues efforts to recover from years of manufacturing setbacks and lost market share, while the Trump administration holds a 10 percent stake in the company following earlier federal investments.

Trump wrote that previous administrations had allowed semiconductor production to shift overseas, particularly to Taiwan, and stated that Apple would now work with Intel on domestic chip fabrication. He also referenced prior deals involving Nvidia and Tesla-linked projects, framing the moves as part of a broader push to restore U.S. manufacturing capacity. Intel shares have risen sharply over the past year, reaching a market capitalization above $600 billion, though the company has yet to confirm any finalized agreement with Apple.

Reports from May indicated that Intel and Apple had reached a preliminary understanding for Intel to produce certain chips powering Apple devices inside the U.S., following repeated meetings between Commerce Secretary Howard Lutnick and Apple executives. Analyst Ming-Chi Kuo noted at the time that testing of systems-on-chip using Intel's 18A-P process had begun, with volume production potentially starting in 2027. Neither company has publicly verified the latest assertions from the White House.

Intel's foundry business has long operated at a disadvantage compared with Taiwan's TSMC, which supplies the majority of advanced chips for Apple and other major clients. The chipmaker largely missed the early wave of AI-driven demand due to production delays under previous leadership. Current CEO Lip-Bu Tan has sought outside customers for the capital-intensive manufacturing operations, securing commitments from Nvidia and interest tied to administration funding.

The Trump administration invested roughly $10 billion last year to support expansion of U.S. facilities, a move that aligned with longstanding bipartisan efforts to reduce reliance on foreign fabrication. Apple currently depends heavily on TSMC's capacity in Taiwan, where demand from AI chip designers has strained supply. Any shift toward Intel would provide the company with a major new customer while offering Apple additional manufacturing options.

Industry observers note that even if testing proceeds as described, meaningful output would not arrive until next year at the earliest. Intel's 18A technology only recently entered initial production, driven largely by internal processor needs rather than external contracts. The White House and the companies involved have not released further documentation or timelines beyond the presidential statements.

Stock reaction to the announcement lifted Intel shares nearly 9 percent before markets opened, while Apple shares rose modestly. The episode underscores ongoing volatility in semiconductor equities as policy signals intersect with unconfirmed commercial arrangements.