President Donald Trump announced on June 18 via Truth Social that Apple has agreed to partner with Intel to design and manufacture computer chips in the United States. The deal, which follows over a year of negotiations, marks a significant shift for Apple, which has historically relied on Taiwan Semiconductor Manufacturing Company (TSMC) for its chip production.
Market Reaction
Intel's stock surged as much as 11.5% in early trading on the news, while Apple's shares rose modestly. The broader semiconductor sector also saw gains, with the Direxion Daily Semiconductor Bull 3X ETF (SOXL) jumping over 20%. Companies like Ichor Holdings and Ultra Clean Holdings, which supply equipment for semiconductor manufacturing, also experienced significant stock increases.
Context and Implications
The partnership aligns with Trump's broader push to bring semiconductor manufacturing back to the U.S., a strategy he has emphasized since returning to office in early 2025. The U.S. government has invested heavily in Intel, including an $8.9 billion deal in August 2023 that gave the government a 10% stake in the company. Intel's valuation has since climbed from approximately $100 billion to over $600 billion, with the U.S. stake now worth over $60 billion.
Diversification and Competition
For Apple, the deal represents a move to diversify its manufacturing base amid high demand for advanced chips from AI companies like Nvidia and AMD. Analysts suggest the initial agreement may focus on lower-volume, less critical components, with Intel needing to prove its capabilities before securing more substantial contracts. Apple previously used Intel chips in its laptops and desktops before transitioning to its own custom silicon.
Unconfirmed Details
Neither Apple nor Intel has officially confirmed the deal, and both companies declined to comment on Trump's social media post. The lack of formal confirmation has led some analysts to caution investors about potential overreaction in the stock market. However, the announcement has reignited interest in Intel's foundry business, which has been a key part of its turnaround efforts under CEO Lip-Bu Tan.
Broader Industry Trends
The semiconductor industry has faced supply chain disruptions and increased demand due to the AI boom. TSMC, the world's largest chip manufacturer, has struggled to meet the needs of all its customers, prompting companies like Apple and Nvidia to explore alternative manufacturing options. Intel's push into foundry services, combined with government support, positions it as a potential competitor to TSMC in the U.S. market.