Rumor mill: It appears Intel may be looking to ease its financial hardships by partnering with a rival – Apple. While unconfirmed, such a deal would mark a striking reversal just two years after Apple completed its transition away from Intel chips and released the last macOS version to support Intel-based devices.
Intel has reportedly held early talks with Apple about a possible investment. The struggling chipmaker is seeking to stabilize its business with new backers following recent partnerships with other rivals and overseas investors. Anonymous sources told Bloomberg that the discussions remain preliminary and may not result in a deal.
Intel approached Apple after Nvidia committed to a $5 billion investment to collaborate on semiconductors for data centers and personal computers. SoftBank also offered a $2 billion cash infusion in August. The sources claim Intel has contacted several other companies in search of similar arrangements.
Intel has been under pressure to restore its standing in the chip industry after years of losing ground to competitors. Once the world's dominant processor maker, the Santa Clara-based company has struggled to keep pace with Nvidia, now the market leader in artificial intelligence hardware, and AMD, which has steadily gained share in servers and personal computers.
A potential deal with Apple would carry symbolic weight, though it seems unlikely the iPhone maker would reverse its decision to transition away from Intel processors in Macs. Apple designs its own chips, manufactured by TSMC, and has not indicated any plans to return to Intel architecture.
Intel's latest efforts are unfolding with financial and political backing from Washington. In August, the Trump administration brokered an unusual deal granting the US government a 10-percent stake in the company, framing Intel as essential to rebuilding domestic semiconductor production capacity.
Recently installed CEO Lip-Bu Tan has set out to restore investor confidence while managing Intel's ongoing foundry push. The company initially announced plans to manufacture chips for third parties under former CEO Pat Gelsinger. However, it has struggled to sign enough customers to support its ambitious factory expansion program. In July, Tan said Intel would launch its planned 14A production process only if customers committed to using it.
Apple and Intel have a long history, marked at times by both cooperation and strain. Apple adopted Intel processors in its Macs in 2006 but began shifting to its own chips in 2020, part of a broader effort to bring more semiconductor design in-house. In 2019, Apple also purchased most of Intel's smartphone modem business.
At the same time, Apple has positioned itself as a supporter of US manufacturing. In August, the company raised its domestic investment commitment to $600 billion over four years, up from an earlier $500 billion pledge. At a White House event, Apple announced that the program includes a $2.5 billion commitment to Corning, its longtime glass supplier.
Apple Chief Executive Officer Tim Cook, in a recent CNBC interview, declined to comment directly on Intel but said he hoped to see more competition in the chip foundry business.
"We'd love to see Intel come back," Cook said.