President Trump announced Thursday that Apple has agreed to work with Intel to manufacture chips in the United States. Intel shares jumped 9 percent in premarket trading following the comments, while Apple rose 0.6 percent. Neither company has officially confirmed the partnership, though The Wall Street Journal reported a preliminary agreement last month.

Intel would produce processors based on Apple's chip designs, similar to TSMC's current role. The partnership likely focuses on lower-end M-series chips for select iPad and Mac models. Apple previously used Intel-designed processors for Macs but experienced frequent delays before transitioning to its own Arm-based silicon. Since then, Apple has relied exclusively on TSMC for manufacturing.

The shift comes as Intel CEO Lip-Bu Tan pushes to revitalize the company's manufacturing operations after taking over from Pat Gelsinger. Intel's stock has surged 464 percent over the past year, reaching a $608.7 billion market cap. The US government also holds a 10 percent stake after converting $8.9 billion in unpaid Chips Act grants to equity.

Apple seeks supply chain diversification as TSMC prioritizes AI server chips amid booming demand, leaving fewer production slots for consumer devices. Tim Cook recently cited iPhone 17 supply constraints due to insufficient A19 chip availability. This partnership would give Apple a domestic manufacturing option and reduce reliance on its sole overseas supplier.