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

Intel has approached Apple about a potential investment as part of a wider effort to stabilize its business. The talks are at an early stage and may not result in an agreement. Intel's CEO, Lip-Bu Tan, has been seeking partners while the company rebuilds its foundry plans. Investors reacted immediately; Intel's shares rose more than 6% and closed near $31.22.

In recent weeks Intel has received several large investments. Nvidia invested $5 billion for roughly a 4% stake, and SoftBank invested $2 billion. The U.S. government holds about a 10% stake funded with CHIPS Act money, although some reports show slightly different figures. Apple moved its Mac line from Intel chips to Apple silicon since 2020, so any cooperation would likely focus on manufacturing, packaging, or supply chain options. Therefore, an investment could give Apple more flexibility in U.S. chip sourcing, and it could help Intel secure large, stable customers.

Intel has struggled to compete in the AI market and has been seeking partners to rebuild its business. Recent investments have been aimed at helping Intel expand U.S. manufacturing capacity.