New York: Chipmaker Intel is reportedly in early talks with Apple over a potential investment, in what could become a landmark deal in the semiconductor industry. The discussions, first reported by Bloomberg, come as Intel tries to regain its footing after years of losing ground to rivals like AMD and Nvidia.
Market Reaction to the News
The possibility of a tie-up triggered excitement on Wall Street. Intel’s stock surged 6.4% to $31.22 on Wednesday, while Apple’s shares dipped slightly to $252.31.
The report comes just a week after Nvidia invested $5 billion in Intel and SoftBank Group contributed $2 billion, signaling renewed confidence in the American chip giant.
Why Intel Matters to the US
Intel is considered a strategic pillar of America’s domestic semiconductor industry, especially as global supply chains face increasing geopolitical risks.
In August, the US government acquired a 10% stake in Intel, underlining its importance to national security and technological independence.
Intel’s new CEO Lip-Bu Tan is now steering a turnaround strategy, focusing on a more measured expansion of the company’s chip foundries, after previous leadership stumbled with delays and costly projects.
Intel’s Recent Struggles
Once a leader in the semiconductor market, Intel has faced several challenges:
- Losing market share to AMD in processors.
- Falling behind in AI hardware, a sector dominated by Nvidia.
- Difficulty filling advanced chip plants with enough customers.
Despite these setbacks, investor sentiment has improved, with Intel’s stock rising over 60% since early August, thanks to strong government backing and fresh financial injections.
What’s In It for Apple?
Apple’s interest in Intel is not about going back to using its processors—Apple ditched Intel chips in Macs in 2020, shifting instead to its own silicon and manufacturing through TSMC (Taiwan Semiconductor Manufacturing Co.).
Instead, analysts say the move reflects Apple’s desire to strengthen US chipmaking capacity. Speaking at a White House event in August, Apple CEO Tim Cook highlighted Intel’s revival as a potential “domino effect” for American manufacturing.
“We’d love to see Intel come back,” Cook said, noting that stronger competition benefits the entire tech ecosystem.
A Potential Power Deal
While the talks between Intel and Apple are still in the early stages, industry experts suggest that a successful partnership could reshape the semiconductor landscape. It would also send a strong message to China and Taiwan about America’s resolve to rebuild its domestic chipmaking base.
For now, no deal has been finalized, but the discussions point to a growing alliance between US tech giants and the government to secure the future of semiconductors—a sector seen as vital for economic growth and national security.
