NEW YORK – In a surprising turn of events, embattled semiconductor giant Intel has approached Apple for a potential investment, according to reports from Bloomberg. The move signals a desperate bid by Intel to secure new capital and strategic partnerships as it struggles to regain market share and overcome significant operational challenges.
The request comes on the heels of major investment announcements from other tech powerhouses, including a $5 billion deal from Nvidia last week and a $2 billion investment from Japan's SoftBank Group in August. Sources familiar with the matter say the discussions between Intel and Apple are in the early stages, and a formal agreement is far from certain. Following the news, Intel's stock surged by 6.4%, while Apple's shares experienced a slight dip.
This pursuit of investment from Apple is particularly notable given the history between the two companies. For years, Intel was a core supplier of chips for Apple's Mac computers. However, over the past five years, Apple has systematically transitioned its product line to its own custom-designed M-series chips, which are manufactured by Taiwan's TSMC. This strategic shift has left industry experts skeptical that Apple would consider reverting to Intel's chips, making a financial partnership a more likely, though still challenging, possibility.
Intel’s outreach to Apple highlights the deep-seated struggles facing the company. Despite the U.S. government acquiring an approximate 10% stake in August—a move championed by the Trump administration to bolster domestic semiconductor production—Intel has continued to lose ground to competitors like AMD. The company has recently been forced to delay its plans for factory expansions and has implemented staff layoffs as it grapples with a steep decline in profitability and market dominance.
While the investments from Nvidia and SoftBank offer a much-needed lifeline, securing capital from Apple could be a pivotal step for Intel's ambitious turnaround plan. However, with Apple firmly committed to its own chip architecture, the talks remain a testament to the difficult road ahead for the once-reigning "emperor of semiconductors" as it seeks to rebuild its empire.
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