Intel Corporation (NASDAQ:INTC) shares surged in premarket trading on Thursday after U.S. President Donald Trump said Apple Inc (NASDAQ:AAPL) had agreed to work with the chipmaker on designing and manufacturing semiconductors in the United States, a move that could bolster efforts to expand domestic chip production.
Intel stock climbed more than 8% before the opening bell by 04:40 ET (08:40 GMT) following Trump’s comments.
Trump Highlights Domestic Manufacturing Push
In a social media post on Wednesday, Trump said that “Apple has agreed to work with Intel to design and build its Chips in America,” although he did not provide further details regarding the scope or timing of the collaboration.
The president presented the reported agreement as part of a broader strategy aimed at strengthening the U.S. semiconductor industry and reducing reliance on overseas manufacturing.
Trump also pointed to Intel’s partnerships with Nvidia and Elon Musk’s TerraFab venture as examples of progress in rebuilding America’s chipmaking capabilities.
Government Stake in Intel Gains Value
Trump further noted that the U.S. government’s investment in Intel has increased substantially in value since earlier this year.
According to the president, the administration’s 10% holding in the company has risen from approximately $10 billion to $60 billion, reflecting the recent improvement in Intel’s market performance.
The comments added to investor optimism surrounding the company’s turnaround efforts and strategic importance to U.S. industrial policy.
Apple and Intel Reportedly Deepening Ties
The latest remarks follow reports that Apple and Intel had already begun exploring a closer relationship.
According to The Wall Street Journal, the two companies reached a preliminary agreement in early May to collaborate on chips for future Apple devices.
Neither company has publicly disclosed detailed information regarding the potential partnership.
Intel Seeks to Rebuild Foundry Leadership
Once regarded as the world’s leading semiconductor manufacturer, Intel has spent recent years attempting to regain ground lost to competitors such as TSMC (NYSE:TSM) and Samsung Electronics Co Ltd (USOTC:SSNHZ).
The company’s foundry ambitions have faced significant challenges, particularly during the rapid expansion of artificial intelligence, which accelerated demand for advanced chip manufacturing capabilities.
As rivals captured a larger share of next-generation semiconductor production, Intel fell behind in the race to deliver cutting-edge process technologies.
Advanced Manufacturing Progress Supports Recovery Efforts
Recent reports indicate that Intel has begun producing chips using its latest 18A-P process technology, a key milestone in the company’s strategy to restore its competitive position.
The new manufacturing node is expected to play a central role in Intel’s efforts to attract major customers and expand its contract chipmaking business.
With support from Washington and potential collaborations with leading technology companies, investors are increasingly focused on whether Intel can successfully re-establish itself as a major force in advanced semiconductor manufacturing.