Intel has reached out to Apple for support after investments from Nvidia and SoftBank. The deal would bolster the chipmaker’s revival strategy and government support.
Intel seeks investment from Apple to support its revival
Intel Corp., now partly owned by the U.S. government, is in talks with Apple Inc. about a possible investment and collaboration. The move is part of a broader strategy to find partners after losing its technological edge and market share to AMD and Nvidia.
Intel shares rose 6.4% on news of the talks, while Apple shares closed down less than 1%.
Nvidia and SoftBank have already backed Intel
Last week, Nvidia invested $5 billion in Intel to work together on chips for PCs and data centers. In August, SoftBank Group invested $2 billion, and the Trump administration brokered a deal that gave the U.S. about 10% of Intel’s shares.
Thanks to these moves, the company, which until recently was cutting staff and freezing factory construction, has restored investor confidence: shares have risen more than 60% since August.
Why Apple could be the key
For Intel, a deal with Apple would mean further confirmation of the reliability of its revival plan. While it is unlikely that Apple will return to using Intel processors in its devices (Macs and iPhones run on its own chips made by TSMC), Tim Cook’s company is positioning itself as a locomotive of American manufacturing.
In August, Apple promised to invest $600 billion in the U.S. over four years, including $2.5 billion in Corning. Cook himself said that “we would like to see Intel return,” emphasizing the importance of competition in the foundry business.
Intel bets on foundry
Former CEO Pat Gelsinger set a course to transform Intel into a contract chipmaker. The new CEO, Lip-Bu Tan, is continuing that strategy, but more cautiously: the company will only launch its new 14A process technology if it has customers.
For Apple, the investment in Intel could be part of a global strategy to support American supply chains, and for Intel, it could be a chance to get critically needed customers and funds to regain competitiveness.
Related: Nvidia Acquires $5B Stake in Intel to Team on AI Chips
