Trump administration urged Apple, Nvidia, and SpaceX to back Intel's US chip revival as strategic priority.
The Trump administration has actively supported Intel's recovery, urging major US technology companies to invest in or partner with the chipmaker. Apple, NVIDIA, and SpaceX have entered talks or partnerships with Intel as Washington pushes for increased semiconductor production domestically.
This support has improved Intel's access to capital and boosted demand for its processors. However, Intel's contract manufacturing business still relies heavily on work from the company's own product divisions, with external foundry revenue remaining minimal relative to overall manufacturing output.
President Donald Trump and Commerce Secretary Howard Lutnick pressed Apple Chief Executive Tim Cook to use Intel's US factories during discussions on proposed semiconductor tariffs. Apple subsequently reached a preliminary agreement for Intel to manufacture selected chips, though full-scale production may require several years.
Washington converted approximately $8.87 billion in federal funding into an equity stake of roughly 10%, making the US government Intel's largest shareholder. NVIDIA subsequently invested $5 billion, followed by SoftBank's $2 billion contribution. Government officials also encouraged Intel to collaborate with NVIDIA and SpaceX.
Intel Chief Executive Lip-Bu Tan has reorganized engineering teams and redirected spending toward equipment for advanced production and packaging. The company has also recruited managers with experience at Samsung Electronics and SK Hynix.
For the first quarter, Intel reported revenue of $13.6 billion, up 7% year-over-year. Data Center and AI revenue grew 22% to $5.1 billion as cloud and AI customers purchased additional Xeon processors. Despite this growth, Intel recorded a net loss of $3.7 billion, partly attributed to restructuring charges.
Intel projects second-quarter revenue between $13.8 billion and $14.8 billion, with adjusted earnings of $0.20 per share. Tan stated that AI inference is "significantly increasing the need for Intel's CPUs and wafer and advanced packaging offerings."
Intel expanded its engagement with Google Cloud, with the companies agreeing to deploy Intel Xeon processors across AI, inference, and general computing applications. While this represents a substantial processor customer, it does not position Google as a major external buyer for Intel's foundry services.
Intel Foundry generated $5.4 billion in first-quarter revenue, up 16% annually. The majority originated from Intel's internal product groups. External foundry revenue reached $174 million, compared with $31 million in the prior-year quarter, a rise primarily driven by Altera following its separation from Intel—a change accounting for roughly $143 million of the annual increase.
Chief Financial Officer David Zinsner characterized external sales as "legacy business that we have mainly on the wafer side." Nevertheless, Intel has identified external foundry expansion as a critical long-term strategy. The company has secured capital, processor agreements, and government support, yet first-quarter results demonstrate that third-party manufacturing orders have not yet become a significant revenue driver.