Intel soars after Trump says Apple agreed to work with chipmaker on US production

Investing.com-- U.S. President Donald Trump said Wednesday that Apple Inc (NASDAQ: AAPL) agreed to work with Intel Corporation (NASDAQ: INTC) to design and build its chips locally, as part of a government effort to spur more domestic manufacturing.

Trump said in a social media post that “Apple has agreed to work with Intel to design and build its Chips in America,” but did not provide any specifics.

Intel shares surged more than 8% in premarket trading Thursday by 04:40 ET (08:40 GMT).

He said that the move was part of his administration’s efforts to bring semiconductor manufacturing back to the U.S., touting Intel’s tie-ups with Nvidia and with Elon Musk’s TerraFab venture as being part of this effort.

Trump also said the government’s 10% stake in Intel had jumped to $60 billion from $10 billion since taking the stake earlier this year.

Intel and Apple had in early-May reached a preliminary deal to develop chips for Apple devices, the Wall Street Journal reported.

Intel, once the world’s most advanced chipmaker, has vastly lagged rivals such as TSMC (NYSE: TSM) and Samsung Electronics Co Ltd (KS:005930) in developing foundry capabilities to manufacture advanced chips. This gap became increasingly wider during the recent AI boom.

Trump has placed Intel at the center of his efforts to revive domestic chipmaking.

Recent reports showed Intel had begun manufacturing its most advanced chip node, the 18A-P, to bring the company closer to regaining a more competitive foothold in the chipmaking industry.

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