Trump distorts the facts? US media reveal Intel executives were surprised by news of cooperation with Apple
A post by Trump about Apple collaborating with Intel to produce chips triggered a surge in Intel’s stock price. But the latest news shows that even some Intel executives were surprised by the president’s statement.
A social media post by U.S. President Trump sparked optimism in the market that Intel’s wafer foundry business was seeing a major breakthrough. Trump said on Thursday that Apple had agreed to work with Intel to design and manufacture chips in the U.S., which would help strengthen America’s semiconductor supply chain and provide much-needed support from a major customer to Intel.
The bullish news pushed Intel’s stock price sharply higher. However, after Trump’s post, U.S. news site Semafor cited sources saying that Apple and Intel had indeed been negotiating for months regarding domestic manufacturing cooperation, but the status of the deal could not be confirmed. More unexpectedly, some Intel executives were unaware that Trump would announce this news and were surprised by his statement.
Trump’s sudden “official announcement” quickly ignites Intel’s market rally
Earlier on Thursday local time, Trump posted on his social media: “Apple has agreed to work with Intel to design and manufacture chips in the United States.”
Trump also stated that the cooperation would help America regain its leadership in semiconductor manufacturing and stressed that chips must be produced domestically.
After Trump’s post, Intel’s stock price opened 8.8% higher on Thursday, soaring by double digits during the day. Even reports from Semafor didn’t affect the rally, and at its intraday peak, it had jumped nearly 11.9%, spurring a broader surge in chip stocks. The Philadelphia Semiconductor Index rose by over 6.7% at one point, setting a new intraday record high.
The news of chip product cooperation between Intel and Apple quickly stirred heated discussion in the market. Investors believe that if Apple becomes a foundry customer for Intel, it would be the most significant endorsement yet for the Intel Foundry business.
In recent years, Apple’s A series and M series chips have mainly been manufactured by TSMC. For Intel, which is still striving to catch up with TSMC and Samsung, winning Apple’s orders would undoubtedly boost its reputation in advanced process technology.
The two sides have been in talks for months, but formal agreement remains uncertain
However, according to Semafor citing people familiar with the matter, discussions between Apple and Intel regarding manufacturing chips in the U.S. have been going on for months. The sources didn’t disclose whether a final agreement was signed or which chip products were involved.
The report noted that some Intel executives had not been informed that Trump was going to publicly announce this collaboration and were surprised by his statement.
Before the U.S. stock market opened on Thursday, Semafor journalist Rohan Goswami posted on social media: “Sources say Intel and Apple have been discussing U.S. manufacturing for months. It’s unclear how far these talks have progressed. Intel executives were surprised by the (Trump) President’s post.”
This suggests that Trump’s post may have come before the companies’ formal disclosure procedures, or may have been a public statement based merely on existing contact between the two sides.
Intel’s foundry business urgently needs an “Apple-level customer”
For Intel, securing Apple’s orders holds symbolic significance.
Since Pat Gelsinger became CEO, Intel has been trying to transform its foundry business, Intel Foundry, aiming to become the American version of TSMC. The Trump administration has also continued to view Intel as a key pillar for revitalizing America’s advanced manufacturing.
Previous reports already indicated Nvidia, Tesla, and other companies were exploring Intel’s advanced process technology, but Apple’s involvement is considered the most influential step.
Meanwhile, the AI boom has kept TSMC’s advanced capacity tight, prompting major tech companies to seek additional supply sources. The market has long speculated that Apple might add a second supplier for some products to reduce reliance on TSMC.
Even if a partnership is eventually reached, industry insiders generally expect Apple to be unlikely to shift its core A series or M series processors fully to Intel in the short term, and may start with some peripheral chips, lower-end processors, or packaging business.
The market awaits official confirmation from Apple and Intel
As of now, neither Apple nor Intel has officially announced details of the cooperation.
Thus, after Trump’s “official announcement,” the market focus has shifted from “whether they will cooperate” to a more crucial question: Have the two parties signed a formal agreement, and which chips will Apple actually have Intel manufacture?
Before more official confirmation is obtained, this potential partnership prematurely exposed by Trump still involves plenty of uncertainties.
Risk warning and disclaimerThe market has risks, and investment needs caution. This article does not constitute personal investment advice, nor does it take into account the individual user’s special investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article fit their specific situation. You are responsible for any investment decisions made based on this article.