Tim Cook says iPhone prices will rise. Trump says Apple will make US chips with Intel

President Donald Trump announced on Thursday that Intel has reached an agreement with Apple to commence the production of computer chips in the United States. In a post on Truth Social, Trump stated, "I decided to help Intel because we need to design and build our Chips right here in America." This news caused Intel's shares to surge over 9% in premarket trading, although the company opted not to comment on the announcement. This strategic move is expected to aid Apple in diversifying its manufacturing operations, as the tech giant primarily depends on Taiwan for the processors that power its iPhones, iPads, and Mac computers. Trump's revelation comes on the heels of Apple CEO Tim Cook's remarks to the Wall Street Journal earlier this week, where he indicated that price increases for Apple products are "unavoidable" due to escalating costs for memory and storage chips driven by the AI surge. Cook noted, "We’re doing our best to mitigate the huge increases that are being passed to us, but the situation has become unsustainable." The Trump administration previously supported Intel with an $8.9 billion investment in the company’s stock last August, acquiring about a 10% stake. This investment was aimed at bolstering Intel’s research and manufacturing capabilities within the US, ensuring a reliable domestic supply chain for advanced chips, which is crucial for national security. The agreement reflects a broader initiative to enhance semiconductor manufacturing in the US, aligning with Trump’s goals to maintain the country’s leadership in the global chipmaking sector during his second term. In his Thursday post, Trump expressed curiosity about whether he had undervalued his stake in Intel, noting, "They were worth around 100 Billion Dollars when we made our offer. Now they are worth over 600 BILLION DOLLARS! Nine months, and they’ve increased in value over HALF A TRILLION DOLLARS. America’s stake is now over 60 Billion Dollars." Apple has not yet responded to CNN's request for further comment.