Trump: Apple will have Intel produce chips! INTC pre-market up 6.6%

U.S. President Donald Trump posted on his social platform Truth Social early Thursday (6/18), announcing that Apple has agreed to work with Intel to design and produce chips in the United States. Intel’s stock price jumped by as much as 6.6% in pre-market trading (about a 5.7% increase overnight), while the named company Apple rose only 0.6%.
(Background: Is TSMC’s exclusive position hanging by a thread? Apple reportedly held secret talks with Intel and examined Samsung’s Texas plant to diversify A/M-series chip supply risks.)
(Additional context: Intel fell from its position as the semiconductor king—how did it lose even with a strong hand, after it turned to TSMC for foundry services and ultimately ended up being eyed for acquisition by Qualcomm?)

Key Takeaways

• On 6/18, Trump posted to announce that Apple has agreed to collaborate with Intel to design and produce chips in the United States
• Intel (INTC) stock rose as much as 6.6% pre-market and about 5.7% overnight; Apple climbed only 0.6%
• Last year, the U.S. government took a 10% stake in Intel for roughly $100 billion in market value; today, Intel’s market value has surpassed $600 billion

U.S. President Donald Trump (Donald Trump) wrote early Thursday on Truth Social: “Apple has agreed to collaborate with Intel to design and produce chips in the United States.” It put Intel back in the spotlight. Intel’s (INTC) pre-market trading price once jumped 6.6%, and it also rose about 5.7% overnight; by contrast, the named Apple reacted calmly, rising only 0.6%.

The Intel stake held by the government

In line with the post, Trump dug up an old story: at the time, the U.S. government acquired a 10% stake in Intel with a market value of about $100 billion, and now Intel’s market value has surged past $600 billion.

In other words, the book value of that 10% stake has increased by roughly 6 times. In his post, Trump asked: “When was the last time a president helped the United States make money?”

But this is only a “preliminary” agreement

Don’t rush to pop the champagne for Intel yet. Multiple foreign media outlets emphasize that this cooperation is still in a preliminary stage. The Wall Street Journal reported in May that the two sides spent more than a year negotiating before arriving at a preliminary agreement, under which Intel would produce some chips for Apple; Bloomberg also said last month that Apple is evaluating outsourcing some of its main processors to Intel and Samsung to diversify reliance on TSMC.

As of the time of publication, neither Apple nor Intel has issued an official response, and details including product lines, mass-production timelines, and amounts have not been disclosed.

Frequently Asked Questions

Why does Apple want Intel to produce chips?

Apple’s A and M-series chips are currently manufactured exclusively by TSMC. Partnering with Intel could increase capacity within the United States, diversify supply-chain risks, and align with the Trump administration’s policy direction of producing chips in America. Bloomberg reports that Apple is also evaluating outsourcing to Samsung.

How much of Intel’s equity does the U.S. government hold?

Trump said that last year, the U.S. government acquired a 10% stake in Intel with a market value of roughly $100 billion. Now Intel’s market value has broken past $600 billion, making the book value of this stake about 6 times higher. However, Intel and Apple have not yet officially confirmed the details of this cooperation.