Trump Claims Apple-Intel Chip Deal, Companies Mum Amid Intel Stock Surge
President Donald Trump announced on Truth Social that Apple and Intel agreed to produce computer chips in the United States. Intel's shares surged over 10% following the unconfirmed claim, which neither company has verified. The potential move aligns with efforts to boost domestic chip manufacturing and could help Apple diversify its reliance on overseas suppliers like TSMC for its processor needs.
Key points
- President Donald Trump stated on Truth Social that Apple and Intel have agreed to design and build computer chips in the United States.
- Following Trump's announcement on Thursday, Intel's (INTC) shares spiked significantly, rising between 9% and 11% in premarket trading.
- Neither Apple nor Intel has confirmed the alleged deal, with Apple declining to comment and Intel not verifying the arrangement.
- If confirmed, the deal would likely involve Intel acting as a contract manufacturer for Apple-designed chips, not a return to Intel-designed processors, potentially for older or lower-end components.
- This development supports the broader U.S. push for domestic chip production, aiming to diversify Apple's manufacturing base which largely relies on Taiwan Semiconductor Manufacturing Co. (TSMC).
Former President Donald Trump recently announced via a Truth Social post that technology giants Apple and Intel have struck a deal to manufacture computer chips within the United States. This revelation, made on Thursday, immediately impacted markets, causing Intel's (INTC) stock to surge by more than 10% in premarket trading, elevating its market value past $670 billion.
Despite the significant market reaction, neither Apple (AAPL) nor Intel has officially confirmed the arrangement. Apple declined to comment on the claim, while Intel also refrained from verifying the details of any such agreement. The unconfirmed nature of the announcement leaves investors questioning the specifics and even the existence of the deal.
Should an agreement materialize, it would likely involve Intel serving as a contract manufacturer for chips designed by Apple, rather than a return to Apple utilizing Intel's own processor designs, a practice Apple ceased in 2020. Industry reports suggest that any initial production would likely focus on older or lower-end Apple chips. This potential shift aligns with the U.S. government's ongoing campaign to bolster domestic chip manufacturing capabilities, a policy initiative Trump has publicly championed, including a prior $8.9 billion government investment in Intel's expansion efforts.
For Apple, which heavily relies on Taiwan Semiconductor Manufacturing Co. (TSMC) for the processors powering its iPhones, iPads, and Macs, such a deal could represent a step towards diversifying its global supply chain. This comes amid Apple CEO Tim Cook's recent statements about 'unavoidable' price hikes due to rising memory and storage chip costs, underscoring the strategic importance of stable, diverse sourcing for critical components.
Sources
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