Trump Announces Intel to Build Apple Chips in US, Shares Jump 9%
INTC•President Donald Trump announced Intel will manufacture Apple chips in the US, triggering a 9% premarket jump in Intel shares. The US government’s 8.9 billion dollar investment for a roughly 10% stake has surged to over 60 billion dollars as Intel’s valuation climbed from 100 billion to 600 billion dollars.
1. Deal for US Chip Production
President Donald Trump announced a new agreement under which Intel will begin manufacturing Apple processors domestically, shifting a portion of iPhone, iPad and Mac chip production from Taiwan to its Santa Clara facilities. Intel has not provided a public timeline or production volume targets.
2. Stock Market Reaction
Intel shares surged more than 9% in premarket trading following the announcement, reflecting investor optimism about expanded domestic manufacturing and potential new revenue streams from Apple’s high-volume chip orders.
3. Government Investment Returns
The US government invested 8.9 billion dollars last August for a roughly 10% Intel stake; Trump highlighted that Intel’s valuation rose from about 100 billion dollars then to over 600 billion dollars now, boosting the government’s stake value to above 60 billion dollars.
4. Impact on Apple Supply Chain
Apple CEO Tim Cook said this week that rising memory and storage costs driven by the AI boom have made product price hikes unavoidable. Domestic chip production aims to lower supply chain risks and reduce exposure to overseas manufacturing disruptions.
