Intel and Apple: Potential Partnership in the Works?

Picture Credit: Semafor

Intel Corp. has approached Apple Inc. about a potential investment as part of its broader effort to revive its struggling business, now partially owned by the US government. The talks, still in early stages, also explored ways the two companies could work more closely, though no agreement has been reached.

The move follows a series of high-profile deals aimed at shoring up Intel’s finances, including a $5 billion investment by Nvidia last week and $2 billion from Japan’s SoftBank in August. A deal with Apple would carry symbolic weight: the iPhone maker was once a major Intel customer before switching to in-house processors in 2020.

Intel CEO Lip-Bu Tan is leading the turnaround push with government backing. In August, the Trump administration brokered an unusual deal that gave Washington a 10% stake in the company, reflecting Intel’s strategic importance in rebuilding domestic chip production. Despite this support, Intel continues to face steep challenges, including lost technological ground to AMD and Nvidia, delays in factory expansion, and difficulties breaking into the booming AI chip market.

Apple, meanwhile, has positioned itself as a champion of US manufacturing. It recently pledged $600 billion in domestic investments over four years, with CEO Tim Cook telling CNBC that stronger US-based chipmaking could spark a “domino effect” across the industry. When asked about Intel, Cook said, “We’d love to see Intel come back.”

Investors have taken note. Intel shares have surged more than 60% since August on optimism surrounding the government stake and fresh private investments. While Apple is unlikely to return to using Intel chips in its devices, any partnership would underscore Intel’s bid to reestablish itself as a critical player in the semiconductor race.