Trump Announces Apple-Intel U.S. Chip Partnership, Sending Intel Stock Up 10%

A deal years in the making — and months of rumors

President Donald Trump announced Thursday on Truth Social that Apple has agreed to work with Intel to design and manufacture its chips in the United States, a landmark pairing that sent Intel shares surging more than 10% in early trading.cnbc +1 Intel's stock has already climbed 464% over the past twelve months, and its market capitalization reached $608.7 billion following the news.cnbc Neither Apple nor Intel issued immediate public comment, but the announcement lands after the Wall Street Journal reported in May that the two companies had reached a preliminary manufacturing agreement following more than a year of closed-door discussions.reuters

Trump framed the deal as the capstone of a broader reshoring strategy, writing that "Stupid Presidents took our Economy for granted, and let Taiwan and others steal our Semiconductor Factories."cnbc Commerce Secretary Howard Lutnick reportedly held repeated meetings with Apple leadership to broker the domestic alliance, applying sustained pressure alongside the threat of tariffs on overseas-manufactured semiconductors.hothardware

From TSMC dependency to American silicon

Apple has relied exclusively on Taiwan Semiconductor Manufacturing Company to produce its flagship processors since switching away from Intel's x86 chips in 2020, when it introduced its own M-series silicon.reuters That transition — celebrated for dramatically boosting Mac performance and battery life — left Intel without one of its most prestigious customers for more than five years. For Apple, a partnership with Intel would diversify its manufacturing base at a time when TSMC has been stretched thin by surging demand from AI chipmakers including Nvidia and AMD.reuters

Insider reports suggest Apple has already been testing system-on-chips built on Intel's advanced 18A-P process, with full-scale production of M7 Mac chips targeted for late 2027, followed by next-generation iPhone chips on Intel's 14A node by 2028.hothardware Intel is expected to fulfill Apple's domestic orders from its heavily subsidized fabrication plants in Oregon, Arizona, and Ohio.hothardware

Government equity and a cascade of foundry wins

The announcement is inseparable from the U.S. government's deepening financial stake in Intel. Last year, the Trump administration acquired a 10% equity position in the chipmaker through an $8.9 billion investment, combining CHIPS Act funds with resources from the military's Secure Enclave program.nytimes +1 Trump has since positioned the government's holding as a catalyst for a string of high-profile foundry wins, pointing to a $5 billion Nvidia investment and Elon Musk's TeraFab chip factory — described as the largest in the world — as earlier milestones before Apple's commitment.cnbc +1

The broader semiconductor sector has absorbed the news enthusiastically. Nasdaq's PHLX Semiconductor Sector Index, comprising the 30 largest U.S.-traded chip companies, is up 90% so far this year.cnbc Whether the Apple-Intel arrangement represents a durable industrial partnership or the latest chapter in a high-stakes political pressure campaign will become clearer once — or if — either company formally confirms the terms.