Trump Says Apple, Intel Agreed to Make Chips in US; Intel Jumps After Hours

Source

Korea Economic Daily

Summary

President Donald Trump said Apple and Intel had agreed to design and manufacture chips in the US through a partnership.
Trump said the government provided $9 billion in federal subsidies last year, holds a 10%% stake in Intel, and highlighted a sharp rise in Intel’s valuation.
While TSMC remains dominant in the foundry market, Intel, backed by the US government, is growing quickly amid rising demand for AI chips.

Forecast Trend Report by Period

$9 Billion in Federal Subsidies Last Year

US Government Holds 10% of Intel

‘Taiwan and Others Stole Chip Plants’

‘Chips Must Be Designed and Made in America’

President Donald Trump said on June 18 that Apple had agreed to work with Intel to design and manufacture chips in the US. The Trump administration has pushed for semiconductor production in the US and has actively supported Intel.

Trump disclosed the agreement in a Truth Social post on June 18, saying Apple would partner with Intel to design and produce chips in the US. “The technology the world depends on was invented in America,” he wrote. “We all remember ‘Intel Inside.’” He said “foolish presidents” had allowed Taiwan and other countries to “steal” US semiconductor plants. “We design everything, but now we have to make it here too,” he added. “That’s why we decided to help Intel.”

The Wall Street Journal earlier reported that Apple had reached a preliminary agreement to hand Intel part of the production of its internally designed chips. Trump’s post appeared to formally confirm that report.

Trump also commented on the value of the Intel stake the government acquired after providing $9 billion in federal subsidies last year. He said Intel was valued at $100 billion when the government made its proposal and is now worth more than $600 billion, an increase of more than $500 billion in just nine months.

The market sees the Trump administration’s direct backing of Intel as part of a broader effort to revive US manufacturing by treating the company as a strategic business. Trump wrote that Nvidia had already agreed to produce its first chips with Intel. He also said Elon Musk, Tesla’s chief executive officer, had agreed to build “Terra Fab,” which he described as the world’s largest semiconductor plant, designed with Intel.

Apple has long relied on Taiwan Semiconductor Manufacturing Co. to produce chips used in its smartphones. But a surge in demand for artificial intelligence chips has created bottlenecks at TSMC and increased geopolitical risks, leading Apple to join hands with Intel.

TSMC still dominates the foundry market, but Intel is expanding quickly with support from the US government. The Information, a US technology publication, reported that Google also plans to use Intel’s foundry business to produce its TPU artificial intelligence chips.

Kim Dong-hyun, Hankyung.com reporter, 3code@hankyung.com