Trump says Apple to work with Intel to design and build chips in the US, sending shares up 6%

Trump touts Apple pact

President Trump announced on Truth Social that Apple will design and build chips with Intel in America. "Apple has agreed to work with Intel to design and build its Chips in America," he wrote, framing the deal as a victory for his effort to repatriate semiconductor manufacturing. He added that previous presidents had "neglected our economy and let Taiwan and others take our semiconductor factories." The president also disclosed that Nvidia invested $5 billion in Intel last year and that Elon Musk's Terafab plant will use Intel technology.

Market reaction and Intel's rally

Intel shares rose more than 6% on the day, extending a rally that has multiplied the stock's value roughly sixfold over the past 12 months. The company's market capitalization now exceeds $600 billion, up from about $100 billion when the US government acquired a 10% stake for $8.9 billion in August 2025. Trump claimed the share surge had enriched the federal treasury by more than $60 billion, asking, "When was the last time a President made America money??"

What the deal means for Apple and Intel

For Apple, the agreement offers a chance to diversify away from its heavy reliance on TSMC, whose advanced production lines are in high demand. Bernstein analyst Stacy Rasgon cautioned that any initial deal would likely involve small runs of lower-priority chips, such as low-end PC components.

Intel will of course have to prove their mettle before being granted more substantial wins, but the first step is always the hardest, so at least they appear to be taking that step.

Apple CEO Tim Cook told the Wall Street Journal that price increases are inevitable because of soaring memory and storage chip costs, calling the situation "unsustainable."

We are doing our best to cushion the massive cost increases being transferred to us and we have tried to protect our customers from these increases, but the situation has become unsustainable.

Analyst outlook and timeline

Creative Strategies analyst Ben Bajarin expects Intel-made Apple chips no sooner than 2028, with initial volumes likely focused on Mac computers before expanding to iPhones. The multi-year lead time reflects the complexity of qualifying a new manufacturing partner.

Intel's organizational reshuffle

The Apple announcement landed alongside Intel's appointment of semiconductor veteran Seok-Hee Lee as executive vice president of foundry packaging. Lee, former CEO of both SK On and SK Hynix, will oversee advanced packaging and back-end manufacturing, while Naga Chandrasekaran concentrates on front-end technology development and the ramp of 18A and 14A processes. Tesla was named in April as the first major customer for the 14A node, slated for mass production in 2029.

Key milestones