Intel Corp.’s stock surged more than 9% in premarket trading Thursday after President Donald Trump said the company will partner with Apple Inc. to design and produce semiconductors in the U.S. The announcement extends Intel’s recent rally as the chipmaker rebounds from years of operational headwinds.
The deal aligns with the administration’s push to boost domestic semiconductor manufacturing and reduce reliance on overseas foundries. Intel has been investing heavily in new U.S. fabrication plants as part of its turnaround strategy. Apple, a major consumer of custom chips, has previously sourced components from TSMC.
Shares jumped on the news, adding to gains from earlier this week. Intel’s stock had already been climbing amid broader optimism in the chip sector. The precise financial terms of the partnership were not disclosed by either company.
Analysts see the collaboration as a potential catalyst for Intel's foundry business, which has struggled to attract marquee clients. For Apple, the deal could diversify its supply chain and align with its stated goal of increasing U.S.-based production. Both firms face execution risks in ramping output.
Some market observers caution that the announcement may be more symbolic than substantive until concrete milestones are met. No timeline or volume commitments were provided by either party.