Intel shares surged in early trading after President Donald Trump posted on Truth Social that Apple had agreed to work with the semiconductor giant to design and manufacture its chips in the United States.

President Trump portrayed the agreement as another victory for his administration’s industrial policy after the federal government acquired a 9.9% stake in Intel last year.

“Stupid Presidents took our economy for granted and allowed Taiwan and others to take over our semiconductor factories,” Trump wrote in his post. “We design everything, but we need to BUILD it here, NOW! So I decided to help Intel because we need to design and manufacture our chips right here in America… and finally Apple agreed to partner with Intel to design and manufacture their chips in America.”

What is known about the Intel–Apple cooperation

Back in May, Intel reportedly reached a tentative agreement to produce chips for Apple, which has been experiencing supply issues for its iPhone and other products. The deal could help Apple reduce its dependence on its longtime partner TSMC by moving more of its chip production to the United States.

“This partnership helps Apple develop and manufacture chips in the United States, with a greater focus on reducing its dependence on Asian manufacturing facilities,” Wedbush’s Dan Ives said in a company report. He set a $400 price target for Apple shares this year.

How the deal relates to Intel’s 18A-P process

The timing aligns with Intel’s technical roadmap. Earlier this week, Intel confirmed that its cutting-edge, performance-enhanced 18A-P process has officially entered the trial production phase. The move serves as a model for both Intel chips and the processors the company plans to produce for its customers.

“Current capacity constraints are likely pushing customers to look more closely at Intel at this stage than they would normally be inclined to do, as the prospect of more advanced capacity becomes more valuable in a resource-constrained environment,” wrote Bernstein analyst Stacey Rasgon. “We’re sure Trump’s support at least won’t hurt.”

Why demand for Intel Foundry is growing

Momentum was gained through Intel Foundry services as growing global demand for AI consistently exceeded production capacity. Earlier this month, Google placed an order with Intel to produce more than 3 million Tensor Processor chips in 2028. According to the report, Nvidia is also testing Intel’s ability to produce next-generation Feynman chips.