Intel shares climbed sharply Thursday after President Donald Trump announced what he described as a new partnership between Apple and Intel to design and manufacture semiconductors in the United States, a move that immediately drew investor attention and renewed focus on America's effort to rebuild domestic chip production.
The rally briefly pushed Intel stock into double-digit gains before moderating. Shares remained up nearly 7% by mid-morning trading as investors assessed the potential implications of closer ties between two of the country's most influential technology companies.
Trump unveiled the development in a social media post, framing it as part of a broader push to restore semiconductor manufacturing capacity that has shifted overseas over the past several decades.
"Stupid Presidents took our Economy for granted, and let Taiwan and others steal our Semiconductor Factories," Trump wrote. He added that policymakers "forgot to protect our Industries with TARIFFS."
The president argued that the United States must regain control of a sector increasingly viewed as critical to economic competitiveness and national security.
"It was clear America needed its Semiconductor Industry to come back to the U.S.A. We design everything, but we need to BUILD it here, NOW! So I decided to help Intel because we need to design and build our Chips right here in America," Trump said.
Trump also claimed that Apple had agreed to work with Intel on future chip projects inside the United States.
"Apple has agreed to work with Intel to design and build its Chips in America. We decided to help Intel in exchange for 10% of their shares. Is that too much or, too little? They were worth around 100 Billion Dollars when we made our offer. Now they are worth over 600 BILLION DOLLARS!"
Neither Apple nor Intel immediately provided additional details regarding the scope, timing or structure of the proposed collaboration. Investors nevertheless viewed the announcement as another sign that Intel's turnaround strategy under Chief Executive Lip-Bu Tan could be gaining momentum.
The company has spent the past year restructuring operations while attempting to reestablish itself as a major force in advanced semiconductor manufacturing. Since taking over, Tan has implemented broad cost-cutting measures and organizational changes aimed at improving competitiveness.
Key elements of Intel's restructuring have included:
- Workforce reductions across multiple divisions
- Divestitures of non-core businesses
- Delays to planned factory projects in Germany and Poland
- Recruitment of new executives and management restructuring
