- President Trump announced via Truth Social that Apple has agreed to work with Intel to design and produce semiconductors in the US, sending Intel shares up 13% to a record close of $133.99 — Intel’s highest level ever.
- Neither Intel nor Apple confirmed details of the arrangement; analysts expect any initial foundry relationship to be low-volume and limited to less critical components, as Intel has yet to prove its factories can match TSMC’s advanced manufacturing output.
- Landing Apple — currently almost entirely dependent on TSMC — as even a partial foundry customer would be a landmark win for Intel CEO Lip-Bu Tan’s turnaround plan and could unlock additional customers nervous about being first movers.
- Intel also announced the hire of chip industry veteran Seok-Hee Lee as EVP of foundry advanced packaging, reporting directly to Tan — and Trump separately said he is personally backing Intel because “we need to design and build our Chips right here in America.”
What Happened?
In a Truth Social post, President Trump announced that Apple has agreed to partner with Intel to design and build chips in America, describing himself as personally intervening to support domestic semiconductor production. Intel’s shares jumped 13% to a record close of $133.99. Apple’s stock rose less than 1% to $298.01. Neither company commented publicly — Intel declined to comment and Apple did not immediately respond. Bloomberg had previously reported that Apple was in exploratory talks about using both Intel and Samsung as alternative domestic chip manufacturers for its main device processors, as a hedge against TSMC concentration risk. On the same day, Intel hired semiconductor veteran Seok-Hee Lee as EVP of foundry advanced packaging, reporting directly to CEO Lip-Bu Tan.
Why It Matters?
Intel’s foundry revival — the cornerstone of Lip-Bu Tan’s turnaround strategy — has struggled to attract marquee external customers since the company began seriously pursuing the business. Apple is the crown jewel of the chip foundry market: its A-series and M-series processors are among the most advanced consumer chips in the world, and an Apple imprimatur would signal to other hyperscalers and device makers that Intel’s manufacturing quality has reached TSMC-competitive levels. Trump’s active involvement — including a prior deal that made the US government one of Intel’s largest investors, plus Nvidia’s $5 billion investment — underscores how deeply Intel’s fate has become entwined with US industrial policy. An Apple design win, even initially limited to lower-tier components, would be the single most powerful signal that Intel’s foundry business is viable.
What’s Next?
Bernstein analyst Stacy Rasgon noted that Intel “will of course have to prove their mettle before being granted more substantial wins” and that early foundry work would likely be “low-volume, less important parts.” The key variable is whether Intel can demonstrate advanced-node manufacturing yields that approach TSMC’s — a bar it has not yet publicly cleared. Apple’s benefit is real regardless: a second domestic supplier diversifies its supply chain and may help address the memory and component shortages driving its upcoming iPhone price increases. Investors will now watch for formal contract announcements and any signal from Apple on the production timeline and chip categories involved.
Source: Bloomberg
