Intel Seeks Apple Partnership in Bid to Revive Chipmaking Fortunes

Intel Corporation has initiated talks with Apple about a potential strategic investment. The discussions are in early stages and may not lead to a formal agreement. This move comes as Intel seeks partners to bolster its manufacturing operations.

According to Bloomberg, Intel approached Apple with the proposal. The timing follows significant workforce reductions and canceled factory plans by Intel earlier this year.

Intel’s Recent Struggles and Government Backing

Intel has faced intense competition from rivals like TSMC and NVIDIA. The company announced a 15 percent cut to its global workforce in recent months. It also shelved plans for new manufacturing plants in Europe.

The U.S. government purchased a 9.9 percent stake in Intel to support its domestic chipmaking ambitions. This was followed by a $5 billion investment from NVIDIA and a $2 billion injection from Japan’s SoftBank. Intel is reportedly in similar talks with other technology firms.

A Complicated History Between Tech Giants

Apple and Intel have a long but complicated relationship. For years, Intel supplied the processors for Apple’s Mac computers. Apple completed its transition to its own custom silicon chips in 2020, ending its reliance on Intel.

The companies also collaborated on 5G modem chips. Intel ultimately failed to meet Apple’s technical requirements. Apple subsequently purchased Intel’s modem business outright.

An agreement today would not involve Apple returning to Intel chips. Analysts suggest a deal could see Intel manufacturing some components for Apple devices. Apple currently relies entirely on TSMC for its chip production.

The potential Intel Apple partnership highlights the shifting dynamics in the global semiconductor industry. A deal would signal a major strategic pivot for both companies as they navigate an increasingly competitive landscape.

Dropping this nugget your way

What is the main reason for Intel’s talks with Apple?

Intel is seeking investment and partnerships to strengthen its chip manufacturing business. The company has struggled to compete and is looking for stable revenue. Partnering with Apple would be a significant coup.

Will Apple Macs use Intel chips again?

No, that is highly unlikely. Apple has fully committed to its own Apple Silicon processors. Any potential deal would focus on manufacturing, not design.

Has the US government been involved with Intel recently?

Yes. The U.S. government purchased a 9.9 percent stake in Intel earlier this year. The investment was made to accelerate Intel’s domestic chip production plans in Ohio.

What happened with Apple and Intel’s 5G modem project?

Their collaboration on 5G modems was unsuccessful. Intel could not produce modems that met Apple’s standards. Apple ended up buying Intel’s modem business in 2019.

Who currently manufactures Apple’s chips?

Taiwan Semiconductor Manufacturing Company (TSMC) manufactures all of Apple’s A-series and M-series chips. TSMC is the world’s leading dedicated semiconductor foundry.