In a Truth Social post on Thursday, U.S. President Donald Trump stated that Apple has decided to collaborate with Intel to design and produce its chips in the United States.
As Apple looks for more chip capacity, a relationship with Intel helps diversify its production base. The manufacturer of iPhones mostly depends on TSMC, whose sophisticated production lines are highly sought after by AI chipmakers like Nvidia and AMD.
In premarket trade, Intel shares increased by nearly 6.5%, continuing their roughly threefold gain so far this year.
After more than a year of negotiations, the Wall Street Journal reported in May that Intel had secured a preliminary agreement to produce some chips for Apple.
An Apple contract boosts Intel’s reputation and manufacturing business, which has trailed behind TSMC in recent years, by providing a consistent demand from one of the biggest consumer electronics businesses in the world.
Due to the high demand for its central processors, Intel announced earlier this week that a new generation of its manufacturing technology, 18A, has begun production.
The Trump administration acquired a 10% share in Intel last year and declared plans to invest about $10 billion in the chipmaker to develop or expand U.S. plants.
Eight months after the government’s investment in Intel increased to nearly $50 billion, Trump had earlier stated that he “should have asked for more” of a part in the company.
In an attempt to lessen dependency on China, the administration has been ratcheting up efforts to secure U.S. supply chains for vital minerals and semiconductors, including investing in businesses.
