Intel Corporation shares surged 9% on Thursday following reports of a preliminary manufacturing agreement with Apple. The partnership, brokered directly by President Donald Trump and Commerce Secretary Howard Lutnick, marks a significant shift in U.S. industrial policy aimed at aggressively rebuilding domestic semiconductor infrastructure.
Under the preliminary agreement, Apple is expected to utilize Intel’s advanced 18A node process to manufacture silicon for upcoming devices, potentially including future iPad Pro and entry-level MacBook Air models. Intel stock climbed nearly 14% intraday as markets reacted to the government-backed partnership.
Federal Coordination Drives Semiconductor Alliances
The alliance follows the administration’s ongoing campaign to actively coordinate industrial supply chains. Last summer, the U.S. government converted approximately $9 billion in federal subsidies into a 10% equity stake in Intel, making it the company’s largest single shareholder.
Commerce Secretary Howard Lutnick and the President spent the past year repeatedly lobbying Apple CEO Tim Cook to shift portions of the company’s extensive silicon demands to domestic foundries. This preliminary manufacturing agreement follows similar government-brokered contracts for Intel, including a $5 billion custom data center CPU investment from Nvidia and a joint Texas manufacturing facility with Tesla and SpaceX.
TSMC Faces Growing Pressure From U.S. Supply Chain Diversification
The integration of Apple into Intel’s foundry ecosystem introduces a direct threat to Taiwan Semiconductor Manufacturing Company. Apple has historically operated as one of TSMC’s largest and most reliable clients.
As the surge in artificial intelligence hardware consumes vast amounts of advanced-node capacity globally, Apple is now accelerating efforts to reduce its reliance on East Asian manufacturing. The shift toward Intel’s 18A node capabilities indicates a structural reorganization of global consumer electronics supply chains, prioritizing geographic proximity and government alignment over established offshore partnerships.