Apple Partners with Intel on U.S. Chip Production as Shares Jump 8%
AAPL•Intel shares rose about 8% after President Trump said Apple will work with Intel to design chips in the U.S., a preliminary deal focusing on mature silicon to diversify away from TSMC. CEO Tim Cook warned AI-driven memory costs have surged and may force product price hikes.
1. Apple-Intel U.S. Chip Partnership
Following President Trump’s announcement, Intel and Apple will collaborate to design chips in the U.S. Intel shares rose about 8% in early trade on the news, and analysts expect the preliminary agreement to focus on mature or lower-end silicon, helping Apple diversify its manufacturing footprint beyond TSMC.
2. AI-Driven Memory Cost Pressures
CEO Tim Cook said surging demand from AI data centers has tightened memory supply and driven component costs to unsustainable levels for consumer products. Cook warned Apple may need to raise prices on certain devices and is prepared to use its balance sheet to support expanded memory production capacity.
