Intel Jumps 9% After Trump Says Apple Will Design and Build Chips in the US

Key Takeaways

• Intel shares jumped more than 9% after Trump said Apple had agreed to design and manufacture chips with Intel in the US
• The reported deal could provide Intel’s foundry business with one of its biggest customers as it looks to compete more directly with TSMC
• Rising memory chip costs and AI-driven demand are pushing technology companies to rethink supply chains and manufacturing capacity

Intel shares rose in premarket trading after President Donald Trump said Apple had agreed to work with the company on chip design and manufacturing in the US. The announcement comes as Intel continues its push to grow its foundry business. This is an area where it has spent years trying to catch up with Taiwan Semiconductor Manufacturing Company (TSMC). Reports reveal that the two companies had been discussing a potential manufacturing agreement for more than a year.

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Apple Could Give Intel a Much-Needed Foundry Customer

Intel shares gained more than 9% before the market opened following Trump’s post on Truth Social. Apple currently relies on TSMC for the production of its custom chips used in iPhones, Macs, and other devices. A manufacturing agreement with Intel would give the company additional production capacity while supporting efforts to expand US chip manufacturing.

The reported partnership would also be notable for Intel. Its foundry business has struggled to attract major outside customers despite significant investments in new fabrication facilities. Earlier this week, Intel said its 18A process technology had entered initial production. The company has positioned the technology as a key part of its effort to compete for advanced semiconductor contracts.

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Rising Chip Costs Continue to Pressure the Industry

The reported agreement comes as technology companies deal with rising semiconductor costs. Apple CEO Tim Cook recently told The Wall Street Journal that higher memory chip prices had become difficult to absorb as demand linked to artificial intelligence continues to grow. Cook said,

“We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable.”

Research firm Omdia expects average smartphone selling prices to rise in 2026 as manufacturers face higher component costs. TSMC has also indicated that inflation and production expenses could lead to further price increases. Meanwhile, Samsung has warned about ongoing memory chip supply constraints.

For Apple, expanding its manufacturing base could help reduce dependence on a single supplier at a time when competition for advanced chip capacity remains intense. And for Intel, securing a customer of Apple’s scale would provide another boost to the foundry business.

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