Intel rallies 12% on Apple US chip deal, pressures TSMC dominance
TSM•President Trump announced that Intel will work with Apple to design and produce semiconductors domestically, sending Intel shares up 12% to a record $135.48 and lifting Apple shares 1.6%. The move could divert some iPhone processor volume from Taiwan Semiconductor Manufacturing Co., potentially pressuring its market share and pricing.
1. Chip deal announcement
President Trump declared that Intel will collaborate with Apple to design and manufacture iPhone processors within the United States, marking a significant strategic shift in Apple’s supply chain.
2. Market reaction
Intel shares surged as much as 12% to a record $135.48 at the New York close, while Apple stock gained up to 1.6% on investor optimism about domestic chip sourcing.
3. Implications for Taiwan Semiconductor Manufacturing Co.
Apple relies heavily on TSMC for its A-series chips; any partial shift of volume to Intel’s foundry could erode TSMC’s market share and put downward pressure on its pricing power.
4. Analyst outlook
Industry analysts expect Intel’s initial shipments to be low-volume, noting the company must demonstrate advanced manufacturing capabilities before winning substantial additional business away from TSMC.
