Intel stock jumped 12% after President Trump announced a domestic chip design and production partnership with Apple, aiming to build iPhone processors in the US. Apple’s move could diversify supply beyond Taiwan Semiconductor Manufacturing and boost Intel’s nascent foundry business under CEO Lip-Bu Tan.
President Trump posted that Apple has agreed to work with Intel to design and build chips in America, highlighting an initiative to produce iPhone processors domestically. He provided no further details on chip specifications or production timelines.
Intel’s share price rallied up to 12%, reaching a record intraday high, as investors anticipated a major foundry client win. Apple stock also rose by as much as 1.6% on the news.
Intel’s foundry arm, led by CEO Lip-Bu Tan, seeks to attract external clients after past setbacks and government investment support. Analysts expect initial volumes to cover lower-demand components while Intel proves its manufacturing capabilities against TSMC’s advanced processes.
Apple currently relies heavily on Taiwan Semiconductor Manufacturing for its main processors, and adding Intel could alleviate capacity constraints and supply shortages. A U.S.-based supplier may also align with broader industry efforts to onshore critical semiconductor production.
