Intel and Apple: Talks About Investment and Supply-Chain Choices

Intel has approached Apple about a possible investment as part of a broader push to revive its business under CEO Lip-Bu Tan. The talks are at an early stage and may not produce a deal, but the company has been seeking partners to support its foundry and manufacturing plans. Intel has recently secured sizable capital from other investors: Nvidia agreed to invest $5 billion for a roughly 4% stake, and SoftBank invested $2 billion. The U.S. government also holds about a 10% stake in Intel, financed in part with CHIPS Act funds.

Apple moved its Mac line away from Intel processors in 2020 and now uses Apple-designed silicon that is largely manufactured by TSMC. A partnership with Intel would therefore not mean a return to Intel CPUs for iPhones or Macs, but could create new manufacturing or supply arrangements, including advanced packaging or domestic fabrication. Such cooperation would align with efforts to build U.S. chip capacity, which has been a focus for industry and policymakers, and Intel needs large, stable customers to justify its factories.

Markets reacted quickly: Intel shares rose more than 6% on the news and closed near $31.22, while Apple shares were modestly lower. Nvidia's $5 billion deal was framed as a technical collaboration and does not include Intel's foundry business. Not only has Intel pursued outside investment, but it has also sought collaboration deals focused on PC and data-center chips, which highlights the company's strategy to rebuild technical partnerships. Consequently, analysts and investors will watch any talks closely. Nevertheless, the talks with Apple are preliminary and private, so they might end without a transaction. 'The U.S. Government is not involved in Intel's day-to-day operations.'