U.S. President Donald Trump said Apple has agreed to work with Intel on designing and manufacturing chips in the United States.
The announcement forms part of the administration’s wider strategy to strengthen domestic semiconductor production and reduce America’s reliance on overseas chipmakers.
Trump Announces Apple and Intel Cooperation
Trump revealed the development in a social media post on Wednesday.
He said Apple had agreed to collaborate with Intel to design and produce chips in America. However, he did not disclose financial terms, production targets or a timeline for the project.
The announcement triggered a strong market reaction. Intel shares jumped by more than 10% when trading opened on Thursday.
White House Pushes U.S. Semiconductor Production
Trump presented the Apple agreement as another step toward rebuilding the American semiconductor manufacturing industry.
The administration has made Intel a central part of its effort to bring advanced chip production back to the United States.
Trump also pointed to Intel’s relationships with Nvidia and Elon Musk’s TerraFab venture as further evidence of progress in domestic chip manufacturing.
U.S. Government Stake in Intel Gains Value
The president said the U.S. government’s 10% ownership stake in Intel had increased significantly in value.
According to Trump, the investment is now worth approximately $60 billion, compared with around $10 billion when the government acquired the position earlier this year.
The increase reflects the sharp recovery in Intel’s market value and growing investor optimism surrounding its domestic manufacturing plans.
Apple and Intel Reportedly Reached an Earlier Deal
Apple and Intel had already reached a preliminary agreement in early May, according to a report from The Wall Street Journal.
The proposed collaboration reportedly focused on developing chips for future Apple devices.
A formal manufacturing relationship with Apple could provide a major boost to Intel’s foundry division. It would also give the company an important opportunity to demonstrate its ability to produce advanced chips for leading technology businesses.
Intel Has Fallen Behind Major Chipmaking Rivals
Intel was once considered the world’s most advanced semiconductor manufacturer. However, it has lost significant ground to rivals such as Taiwan Semiconductor Manufacturing Company and Samsung Electronics.
Both companies have developed more competitive foundry operations for producing advanced chips on behalf of outside customers.
Intel’s disadvantage became even more visible during the artificial intelligence boom. Demand for cutting-edge processors accelerated rapidly, while the company struggled to match the manufacturing capabilities of its competitors.
Intel Begins Production With Advanced 18A-P Process
Recent reports indicate that Intel has started manufacturing chips using its advanced 18A-P process node.
The technology could help the company close part of the gap with TSMC and Samsung while attracting more external customers to its foundry business.
Successful production using 18A-P would represent an important step in Intel’s attempt to regain a stronger position in the global semiconductor industry.
The potential cooperation with Apple could further strengthen that recovery and support the administration’s broader goal of expanding U.S.-based chip production.
