Intel's shares saw a significant jump of nearly 9% in pre-market trading and remained up almost 7% by 10:00 a.m. E.T. following an announcement from President Donald Trump. Trump stated on Truth Social that Apple had agreed to collaborate with Intel to design and build chips domestically. This move is seen as a major endorsement for Intel's foundry business ambitions, aiming to become a contract manufacturer beyond its own products.
The specific terms and scope of the agreement between Apple and Intel are currently unclear, as neither company has publicly confirmed the details. Analysts suggest that any initial deal would likely focus on less bleeding-edge components for older devices, as Apple's most advanced chip requirements with TSMC are highly specialized. However, securing Apple as a customer would provide Intel with consistent demand and bolster the credibility of its efforts to compete with industry leader Taiwan Semiconductor Manufacturing Co. (TSMC).
This news coincides with Intel's recent announcement regarding its new 18A-P manufacturing process. The 18A-P process has entered "risk production," an early stage of manufacturing to assess various factors before full-scale output. Intel claims that 18A-P offers up to 9% higher performance, 18% lower power consumption, and improved thermal resistance compared to its existing 18A process, which has been in volume production since December.
President Trump also claimed that his administration invested approximately $10 billion in Intel to help build and expand domestic factories and took a roughly 10% stake in the company. He then went on to claim that Intel's value had increased from around $100 billion to over $600 billion. The president's involvement highlights the political and economic benefits of American-made production, aligning with his broader push to reshore semiconductor manufacturing. Intel's stock has already increased by more than 205% this year due to ongoing turnaround efforts, with an Apple partnership potentially fueling further growth.
