Embattled semiconductor manufacturer Intel has held discussions with Apple regarding potential investment as Intel attempts to shore up its deteriorating financial position.
The companies engaged in multiple conversations both before and after the US government’s $8.9 billion investment in Intel last month, though it remains unclear whether Apple will proceed with any funding, The New York Times reports.
Intel’s capital-raising efforts have already secured significant backing from other technology giants. Last week, the company obtained $5 billion from Nvidia alongside a commitment to collaborate on developing artificial intelligence semiconductors. SoftBank, which holds a majority stake in British chip designer Arm, provided $2 billion in funding weeks earlier.
The Trump administration’s investment represented the most significant government intervention in an American corporation since the 2008 financial crisis bailout of the automotive sector. Intel’s share price reached $31.22 at Wednesday’s close, marking a 52 per cent increase from the government’s August purchase price of $22, with an additional 6 per cent gain following reports of the Apple discussions.
Since its Silicon Valley founding in 1968, Intel dominated the semiconductor industry but failed to capitalise on major technological shifts, including mobile computing and artificial intelligence. The company’s manufacturing capabilities have deteriorated while competitors advance in AI-focused chip production.
Commerce Secretary Howard Lutnick attempted to assist Intel prior to assuming office in January, discussing with Taiwan Semiconductor Manufacturing Company a potential takeover of Intel’s manufacturing operations through a spin-off structure. This arrangement would have involved investment stakes from Apple, Nvidia and other technology corporations.
Intel’s production technology continues to lag behind TSMC’s advanced capabilities, prompting Apple to maintain its existing manufacturing partnership with the Taiwanese firm rather than shifting production to Intel’s facilities.
