The deal marks a significant shift in Apple's supply chain strategy and a major validation of Intel's turnaround efforts, following a social media announcement by the U.S. President.
In a stunning reversal of their historic rivalry, Apple is turning to Intel to manufacture its custom chips on U.S. soil. The deal, announced by President Trump in a social media post today, Thursday, sent Intel’s stock soaring 9 percent in premarket trading, while Apple saw a modest 0.6 percent increase.
The move addresses a critical vulnerability for Apple: its heavy reliance on Taiwan-based TSMC. On a recent earnings call, CEO Tim Cook confirmed supply for the popular iPhone 17 lineup was constrained by an inability to secure enough A19 and A19 Pro chips. The global AI boom is consuming vast semiconductor manufacturing capacity, weakening Apple's negotiating position.
For Intel, securing Apple is a monumental validation of its strategic turnaround. The chipmaker had previously lagged behind competitors like TSMC and Samsung in advanced manufacturing. Under CEO Lip-Bu Tan, who took over in 2025, the company aggressively revamped its struggling foundry services.
The market has responded with overwhelming confidence. Intel's stock has surged an incredible 464 percent over the past 12 months, reaching a market capitalization of $608.7 billion. Its revival was supported by the U.S. government converting $8.9 billion in Chips Act grants into a 10 percent equity stake in 2025.
Manufacturing chips for Apple—a company known for its exacting standards and massive scale—is the ultimate proof point for Intel's revitalized capabilities. It provides a massive new revenue stream and re-establishes Intel as a leader in cutting-edge chip fabrication.
