Intel stock surged 9% in premarket trading on Thursday after President Trump announced that Apple agreed to work with the chipmaker to design and build chips in the United States, marking a major endorsement of Intel’s turnaround and a significant shift in the semiconductor supply chain.
In a Truth Social post early Thursday, Trump said “Apple has agreed to work with Intel to design and build its Chips in America,” framing the partnership as part of his administration’s push to reshore manufacturing and reduce dependence on overseas production. Intel shares jumped to more than $133 in early trading, potentially setting a record closing high for the Santa Clara-based company, according to the Wall Street Journal.
The announcement builds on a preliminary agreement Apple and Intel reached in May after more than a year of intensive talks. Intel’s foundry business, which manufactures chips for external customers, has been central to the company’s turnaround strategy. The partnership allows Apple to diversify its chip supply chain, which has long relied heavily on Taiwan Semiconductor Manufacturing Company (TSMC).
Intel’s recovery has been dramatic. The company’s share price has surged fourfold since the federal government announced a 10% stake in Intel last August, according to the Wall Street Journal. The government’s investment and subsequent partnerships have positioned Intel as a key player in the Trump administration’s broader effort to rebuild domestic semiconductor manufacturing capacity amid geopolitical tensions and supply chain concerns.
Why Supply Chain Diversification Matters
For Apple, the deal represents a strategic effort to reduce concentration risk by moving some production away from Taiwan, where TSMC is located. As global tensions rise and competition for advanced chip capacity intensifies, having a U.S.-based alternative supplier provides Apple with greater manufacturing flexibility and resilience. The partnership also aligns with Apple’s stated commitment to increase domestic investment, including a $600 billion pledge announced last year to expand U.S. manufacturing.
For Intel, the Apple contract validates its foundry business model and provides crucial revenue as the company invests heavily in new manufacturing facilities. Intel has also secured a $5 billion investment from Nvidia for chip development and manufacturing, signaling confidence from major tech companies in Intel’s ability to serve as a foundry partner.
Sources
- Wall Street Journal — Intel shares surge details, 10% government stake announcement, share price movement to $133
- The Hill — Trump’s Truth Social announcement, Apple-Intel partnership details, supply chain context
- Yahoo Finance — Intel premarket trading movements and Apple partnership confirmation
- Supply Chain Digital — Apple’s supply chain diversification strategy and domestic manufacturing focus
