According to sources familiar with the matter, chip manufacturer Intel Corporation (INTC.US) has extended an investment invitation to Apple Inc. (AAPL.US), hoping the latter will invest in the company. Intel is currently experiencing poor operating conditions and is partially owned by the U.S. government, with this investment seeking being one of the measures to revitalize its business. The sources indicated that Apple and Intel have also engaged in discussions about "deepening cooperation." However, they emphasized that negotiations are still in preliminary stages and may not ultimately result in an agreement.
On Wednesday, Intel's stock price rose 6.4% in U.S. trading, closing at $31.22; Apple's stock declined slightly by less than 1%, closing at $252.31.
If Apple and Intel reach an investment agreement, it would be another significant external support for Intel in recent times. Last week, NVIDIA Corporation (NVDA.US) announced a $5 billion investment in Intel and plans to collaborate with Intel on developing personal computer and data center chips. Last month, Japanese tech giant SoftBank Group Corp. announced a $2 billion investment in Intel to further expand its U.S. market presence.
Sources also added that Intel is simultaneously reaching out to other companies to explore potential investment and cooperation opportunities.
Apple was a long-term customer of Intel, but over the past five years has shifted to using self-developed processors. If Apple chooses to invest in Intel this time, it would represent significant recognition of Intel's "revival plan." However, Apple is unlikely to resume using Intel processors in its devices as a result—the iPhone manufacturer's most advanced chips are currently all produced by partner Taiwan Semiconductor Manufacturing Company (TSM.US).
An Intel spokesperson declined to comment on the matter, and an Apple spokesperson did not respond to requests for comment.
**Revival Challenges Under Government Backing**
Intel CEO Lip-Bu Tan is driving the company's revival with support from the U.S. federal government. In August this year, through an unconventional deal facilitated by the Trump administration, the U.S. government acquired approximately 10% of Intel's shares. For the White House, revitalizing domestic U.S. chip production is a core priority, and Intel is viewed as a key component of this plan.
Even with financial support, Intel faces formidable challenges. The Santa Clara, California-based company has lost its long-held technological advantage, with market share captured by competitors such as Advanced Micro Devices Inc. Additionally, Intel failed to capitalize on the booming artificial intelligence device sales wave—a field where NVIDIA excels.
The former "chip giant" Intel now has sales and market capitalization that represent only a fraction of NVIDIA's. To address deteriorating financial conditions, Intel has implemented layoffs and delayed factory expansion plans. However, since receiving government investment, investors have become increasingly optimistic about Intel's prospects. Since early August, Intel's stock price has accumulated gains of over 60%.
**Cautious Advancement of Foundry Strategy**
During former CEO Pat Gelsinger's tenure, Intel planned to transform into a "foundry," producing semiconductors for external customers. However, the company consistently failed to attract enough customers to support its factory expansion plans.
Nevertheless, Intel under Tan's leadership continues to advance its foundry strategy, albeit with a more cautious approach. In July this year, Tan stated that Intel's rollout of its next-generation cutting-edge production technology called "14A" would be contingent on customers making clear commitments to adopt the technology.
**Complex History Between Apple and Intel**
Apple and Intel have a long history of cooperation, not without friction. For many years, Apple Mac computers used Intel chips, but starting in 2020, Apple began gradually moving away from this supplier—part of Apple's overall strategy to "expand the use of self-developed components." Additionally, in 2019, Apple acquired most of Intel's modem chip business.
Today, while Apple's production remains primarily concentrated overseas, it has been committed to demonstrating its investment commitment to the U.S. domestic market. At a White House event in August, Apple announced plans to invest $600 billion in domestic U.S. projects over the next four years, up from its previous commitment of $500 billion. A core initiative of this expansion plan is a $2.5 billion investment in long-term glass supplier Corning Inc.
Apple CEO Tim Cook stated in an interview that Apple's investments would encourage other companies to increase production in the United States, creating a "domino effect." When asked about his views on Intel, Cook said that competition benefits the chip foundry industry and stated: "We'd love to see Intel make a comeback."