New Delhi – Intel is reportedly in preliminary discussions with Apple over a potential investment and closer cooperation on chip manufacturing, according to people familiar with the matter. The talks come as the U.S. chipmaker pursues new partnerships to support its turnaround strategy.
The discussions are said to be in early stages and may not result in an agreement, Bloomberg reported, citing anonymous sources. Neither Intel nor Apple responded to requests for comment.
Intel has recently secured a $5 billion investment from Nvidia Corp., which will take a roughly 4% stake in the company and collaborate on the development of customised chips for personal computing and data centre applications.
Analysts have suggested that Nvidia benefited from the arrangement, which did not involve Intel producing chips for Nvidia in the short term.
The company has also received a $2 billion equity investment from SoftBank Group Corp. and plans to benefit from a $10 billion U.S. government initiative to expand domestic chip manufacturing.
These funds will support the construction of new fabs in Arizona and Ohio, as well as upgrades to existing plants.
Intel was once a dominant player in semiconductors but has faced declining market share in recent years, particularly in data centre processors and personal computers. It has been largely absent from the artificial intelligence chip market, where Nvidia leads.
Apple was historically a major customer of Intel, but switched to in-house chips produced by Taiwan Semiconductor Manufacturing Co. in 2020.
Bloomberg reported that Apple’s discussions with Intel could indicate a possible diversification of its chip supplier base.
If realised, this could provide a boost to Intel’s struggling foundry operations, while supporting Apple’s strategy to reduce reliance on overseas suppliers amid geopolitical tensions.
White House spokesperson Kush Desai said the U.S. government, despite being a shareholder in Intel, does not participate in the company’s day-to-day operations, although it supports initiatives that strengthen American technology companies.
Intel has also approached other technology firms about potential investments and partnerships as part of its effort to attract more clients for its chipmaking business, which analysts say is central to its future growth.
