Technology giants Intel (INTC) and Apple (AAPL) are reportedly partnering to design and manufacture microchips and semiconductors within the U.S.
On social media, U.S. President Donald Trump said that Intel and Apple have agreed to terms on a deal that will see them produce microchips and processors on U.S. soil.
“Apple has agreed to work with Intel to design and build its Chips in America,” wrote Trump in a social media post.
Neither Intel or Apple have publicly commented on Trump’s post or confirmed that they plan to work together on American-made microchips.
However, Intel’s stock is up 9% in premarket trading after Trump’s comment. Apple’s stock has gained less than 1%.
If true, the move to have Apple and Intel both design and manufacture processors in the U.S. would be a major reversal.
Currently, about three-quarters (75%) of the world’s microchips are manufactured by Taiwan Semiconductor Manufacturing Co. (TSM), including most of the chips used in Apple’s iPhones and other electronic devices.
News of the domestic U.S. manufacturing push is especially good for Intel, which has sat out the artificial intelligence (A.I.) race as it struggled with manufacturing delays and waited for a major customer for its microchip manufacturing business.
However, Intel’s fortunes have turned since the U.S. government, under Trump’s direction, took a stake in the company.
Today, the U.S. government holds a 10% equity stake in Intel. INTC stock has gained 464% in the last 12 months to trade at $121.10 U.S. per share.
AAPL stock has risen 50% in the past year to trade at $295.95 U.S. a share.
