President Trump took to TruthSocial tonight to confirm what was previously rumored: Apple and Intel have agreed a partnership where Intel will manufacture chips for future Apple devices, using Intel’s American-based fabrication sites.

The breadth and depth of the agreement is unclear. It is unlikely that Intel will be able to supply the latest-generation chips for Apple’s highest-end iPhones, any time soon.

Intel stock has surged 9% in pre-market trading in reaction to Trump’s pronouncement.

Last month, analyst Ming-Chi Kuo said Intel had already kicked off production of legacy chips for older iPhone, iPads and Macs. To clarify, these are still wholly Apple-designed chips. Intel is merely joining the manufacturing side of the supply chain.

Obviously, Apple would love to have an alternate supplier for its highest-end Apple Silicon chips too, in order to get TSMC to compete with rival suppliers for orders and get the best prices. But silicon fabrication is incredibly complex and TSMC is miles ahead of anyone else, given Apple’s scale requirements.

Over time, that might change. But at least for the near-term, any Intel and Apple deal will likely be exclusively targeted at low-end or previous-generation Apple products.

Nevertheless, getting Intel as part of the supply chain is surely beneficial for Apple economically and politically, by enhancing its made-in-America production efforts.

Here’s exactly what Trump said on his social media site: