Intel is in talks with Apple about a potential investment, marking the latest step in the chipmaker’s bid to revive its fortunes under government backing.
According to Bloomberg, Intel has approached Apple Inc. to secure funding as part of a turnaround strategy led by CEO Lip-Bu Tan. While the discussions remain in early stages and may not result in a deal, any partnership would symbolize a major vote of confidence in Intel’s recovery plan.
A Push for Partnerships
The potential Apple tie-up follows a string of high-profile deals for Intel:
- Nvidia invested $5 billion last week, committing to collaborate with Intel on chips for PCs and data centers.
- SoftBank injected $2 billion earlier this month, signaling further US expansion ambitions.
Intel has also been reaching out to other companies for possible partnerships, underlining the urgency of its push to regain competitiveness.
Why Apple Matters
Apple, once one of Intel’s biggest customers, shifted away in recent years, developing its own Apple Silicon chips with Taiwan Semiconductor Manufacturing Co. as its main production partner. While it’s unlikely Apple would return to Intel chips for its devices, an investment would reflect both strategic and political considerations:
- Apple is under pressure to expand US-based production and supply chains.
- At a White House event in August, CEO Tim Cook announced a $600 billion commitment to US initiatives, up from a previous $500 billion pledge.
Intel’s Government Backing
In August, the Trump administration brokered an unconventional deal giving the US government a 10% stake in Intel, elevating the company as a linchpin in America’s drive for domestic semiconductor production. Despite the infusion, Intel continues to face daunting challenges:
- Technological edge lost to rivals like AMD and Nvidia.
- Weak AI positioning, as Nvidia dominates the booming market for generative AI chips.
- Delays and cost pressures, including postponed factory expansions and layoffs.
Market Impact
Despite its troubles, Intel stock has rallied more than 50% since early August, buoyed by government support and optimism around new partnerships. Shares closed at $30.81, up nearly 5% on Wednesday.
Apple, meanwhile, continues to leverage its scale to influence US production and investment trends. In an interview with CNBC’s Jim Cramer, Apple CEO Tim Cook said the investments would encourage other companies to add US production, creating a “domino effect.”
The Bottom Line
Intel is betting big on alliances to stage its comeback — and an Apple deal would be its boldest move yet. For Apple, the talks align with political and strategic goals to deepen US production, though its reliance on TSMC for core chip design remains unchanged.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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