Intel has approached Apple to discuss a potential investment in the struggling chip manufacturer, according to Bloomberg News, citing sources familiar with the situation.
The report mentions that Apple and Intel are exploring ways to collaborate more closely, though the discussions are preliminary and may not result in an agreement. Following the news, Intel’s shares rose by 6%.
Intel chose not to comment, and Apple has yet to respond to Reuters’ request for a statement.
Just days earlier, Nvidia announced a $5 billion investment in Intel, acquiring about a 4% stake in the company.
The agreement between Nvidia and Intel includes plans for joint development of PC and data center chips, though it excludes Intel’s contract manufacturing from producing Nvidia chips.
Intel CEO Lip-Bu Tan is actively seeking partnerships to revitalize the company, which has faced difficulties in competing within the rapidly growing AI sector, trailing behind rivals such as Nvidia and AMD.
Nvidia’s investment followed a significant federal deal, orchestrated by the White House, for the government to acquire a 10% stake in Intel, providing around $10 billion to fund U.S. factory expansions.
Last month, SoftBank Group invested another $2 billion in equity in Intel.
Securing strong partnerships and attracting external clients to utilize Intel’s manufacturing facilities are pivotal for its future. The Bloomberg report also notes Intel’s outreach to other companies for potential investments and collaborations.
An investment from Apple would signal renewed confidence in Intel. Apple, a former long-term client of Intel, shifted to its custom silicon chips in 2020.
For Apple, heavily reliant on Intel’s competitor TSMC for chip manufacturing, a partnership with Intel could diversify its supplier base, especially amid potential geopolitical tensions in Taiwan involving China.
This move would also enhance Apple’s relations with the U.S. administration by demonstrating its investment in domestic initiatives. Despite its global supply chain, Apple has committed around $600 billion to U.S. projects over the next four years.
