President Donald Trump said Thursday that Apple has agreed to work with Intel to design and build chips in the United States. According to Techmeme, citing CNBC, Trump's words were that "Apple has agreed to work with Intel to design and build its Chips in America."
The announcement landed as a vote of confidence in Intel's struggling contract-manufacturing business, known as a foundry. Startup Fortune called the arrangement the most credible endorsement Intel's foundry has received yet. Several outlets, including NewsX, framed the move as a way for Apple to reduce its reliance on Taiwan-based chip production.
Investors reacted fast. Intel shares jumped around 9% in premarket trading, per CNBC, and MarketWatch reported the stock climbed 11%, with msn noting it reached a record. Even so, MarketWatch added that analysts caution the Apple deal might start small.
There are signs the two companies have been talking for a while. Republic World reported that Apple and Intel had been in discussions for more than a year and had already reached a preliminary manufacturing agreement earlier this year.
Trump also said the US government's stake in Intel has risen to over $60 billion, according to msn, part of a broader string of high-profile foundry wins for the chipmaker that Yahoo Finance noted. Separately, Wccftech reported Intel is partnering with Taiwan's UMC on 3nm chips, a move aimed at TSMC's foundry dominance.
Why it matters: if a customer as large as Apple commits real volume to Intel's US factories, it could reshape where the world's most advanced chips are made and lessen America's dependence on Taiwan.