Bloomberg, citing unnamed sources, reported that Intel has held preliminary talks with Apple about a possible investment in the struggling US chipmaker. The discussions, which remain at an early stage and may not result in a deal, also explored ways the two companies could deepen cooperation. Intel has approached several potential partners as it looks to secure financial backing and strategic alliances, the people said.
According to Reuters, an Apple investment would represent another vote of confidence in Intel's turnaround effort. In August, the Trump administration brokered an unusual agreement for the US government to acquire a 9.9% stake in Intel, underscoring Washington's view of the company as a linchpin in rebuilding America's chip supply chain.
For Apple, closer ties with Intel would mark a strategic hedge. The iPhone maker relies almost exclusively on TSMC to manufacture its custom-designed processors, a concentration that exposes it to geopolitical risks tied to Taiwan's security. Diversifying its manufacturing base through Intel could help mitigate those risks while reinforcing Apple's ties with Washington. A US-based partnership would also dovetail with Apple's commitment to invest around US$600 billion in domestic initiatives over the next four years.
Still, industry observers caution that Apple is unlikely to return to Intel processors for its Macs. The company completed its transition to in-house silicon in 2020, part of a broader strategy to bring more of its technology development under direct control. Instead, any cooperation is more likely to focus on manufacturing, supply resilience, or modem technologies. Apple has history here: in 2019 it acquired most of Intel's modem chip business, a deal that highlighted both companies' intertwined past and occasional tensions.
Apple and Intel had been close partners for more than a decade, with Intel chips powering Apple's Mac lineup from 2006 until 2020. But the relationship grew strained as Intel's innovation cadence slowed, prompting Apple to accelerate its investment in custom silicon. The split was viewed at the time as a setback for Intel's prestige and a turning point for Apple's hardware ambitions.
Intel's need for new investors has become increasingly urgent. The company has faced steep financial headwinds. While it still held nearly US$43.4 billion in current assets as of June 28 — including US$9.6 billion in cash and equivalents — its turnaround strategy requires substantial external backing.
In recent months, Intel has secured a series of high-profile investments. Nvidia invested US$5 billion in September for about a 4% stake, with plans to co-develop CPUs for data centers and PCs that combine Intel's x86 designs with Nvidia's AI expertise. SoftBank earlier put in US$2 billion at US$23 per share. The US government's 9.9% holding, acquired at US$20.47 per share, remains the most consequential, given its symbolic and strategic weight.
Alongside external funding, Intel has embarked on aggressive cost-cutting, including reducing its dividend to US$0.125 per share and targeting up to US$10 billion in annual savings by 2025. These moves aim to free up resources for manufacturing expansion and advanced node development.
The talks with Apple add a new dimension to Intel's campaign. For Intel, landing Apple's support would provide not only capital but also validation of its foundry ambitions. For Apple, the move could lessen its exposure to Taiwan, tighten links with Washington, and broaden its chipmaking options at a time when supply chain security has become as crucial as product innovation.
Article edited by Joseph Chen
