Intel is reportedly in the initial stages of discussions with Apple Inc. regarding a potential investment, as the American chipmaker aims to regain its position in the competitive semiconductor sector. These talks, first reported by Bloomberg, occur at a crucial juncture for Intel, which is striving to recover from years of declining market share and missed opportunities. While the negotiations are still in the preliminary phase and there is no guarantee of a finalized agreement, sources indicate that the discussions may evolve into a wider collaboration beyond mere financial investment. For Intel, securing backing from Apple—one of the most significant technology firms globally—would represent a substantial advantage in its efforts to reverse its fortunes.
The prospect of this partnership instantly boosted investor sentiment, leading to a 6.4% increase in Intel shares, which closed at $31.22, while Apple’s stock experienced a slight decline to $252.31. This optimism reflects confidence in Intel’s revival strategy, which has drawn interest from major tech players. Recently, Nvidia pledged $5 billion, and Japan’s SoftBank Group contributed a $2 billion investment. Additionally, the U.S. government, recognizing Intel as a strategic asset, acquired approximately a 10% equity stake in August. Intel’s recovery initiative is being led by CEO Lip-Bu Tan, who has vowed to adopt a more cautious approach to expanding Intel’s foundry services than his predecessors.
The company has faced significant challenges, losing market share to AMD in CPUs and forfeiting its leading position in the rapidly growing AI hardware market to Nvidia. Although Intel aimed to be a dominant force in chip manufacturing, it has encountered difficulties in attracting customers for its most advanced processes. Nevertheless, renewed financial support and government backing have propelled Intel’s stock up over 60% since early August. For Apple, any investment in Intel would be mainly strategic, rather than a signal of reverting to Intel processors. The Cupertino-based company began replacing Intel chips in its Mac lineup with its own Apple Silicon processors produced by Taiwan Semiconductor Manufacturing Company (TSMC) in 2020.
However, Apple has demonstrated a strong interest in bolstering U.S.-based chip production, aligning with governmental efforts to lessen dependency on foreign supply chains. At a White House event in August, Apple CEO Tim Cook highlighted the broader industry benefits of domestic semiconductor investments, stating that increased investments from companies like Apple could trigger a domino effect in U.S. manufacturing. Regarding Intel’s recovery, he remarked, ‘We’d love to see Intel come back,’ underlining the potential benefits of enhanced competition within the chip industry. Analysts suggest that Apple’s involvement could aid Intel in rebuilding its credibility, accelerating its domestic manufacturing capabilities, and strengthening the U.S. semiconductor ecosystem.
With support from leading tech companies and Washington, Intel’s revival efforts may be gaining the necessary momentum for a successful comeback.
