Intel stock surges 10% after Trump confirms Apple chip manufacturing deal

Intel Corp. shares jumped 10% in premarket trading on Thursday after President Donald Trump announced that Apple has agreed to work with Intel to design and manufacture semiconductors domestically in the U.S., using Intel's advanced 18A process technology. While neither Intel nor Apple has officially confirmed the deal, Trump's Truth Social post follows reporting from the Wall Street Journal in May that the two companies reached a preliminary agreement after more than a year of negotiations.

This marks a potential shift in Apple's supply chain, as the iPhone maker has relied exclusively on Taiwan Semiconductor Manufacturing Co. (TSMC) for its most advanced chip production. TSMC's capacity has been constrained by surging demand for AI chips from companies like NVIDIA and AMD, creating a rationale for Apple to diversify. The deal would validate Intel's foundry business pivot under CEO Lip-Bu Tan, whose cost-cutting and capacity-building efforts have driven Intel's stock up over 240% year-to-date and established the U.S. government as a 10% owner of the company.

For architects and infrastructure leaders, this signals a structural shift in the semiconductor manufacturing landscape: a second credible source (Intel) now exists for cutting-edge chip production outside Taiwan, potentially opening new design and supply-chain flexibility for companies that have been TSMC-dependent. The deal also underscores the U.S. government's strategic push to onshore semiconductor manufacturing, which could reshape foundry economics and geopolitical supply-chain decisions for years.