Intel Seeks Apple Investment Amid Market Share Loss, Government Backing

Intel, the once-dominant chipmaker, is actively seeking investment from its former major client, Apple, as part of its efforts to revive its struggling business. Intel, which has seen its market share eroded by competitors such as Advanced Micro Devices, is looking to secure external funding to support its operations and expansion plans. The company has already received significant investments from other tech giants, including NVIDIA and SoftBank Group, which have pledged 500 million and 200 million dollars respectively.

Intel's current CEO is pushing for a revival of the company under the support of the U.S. government, which acquired a 10% stake in the company earlier this year. The government's backing is part of a broader initiative to boost domestic chip production, with Intel seen as a key player in this effort. Despite the financial support, Intel faces significant challenges, including a loss of technological edge and market share to competitors.

Intel's efforts to transform into a foundry, producing chips for external customers, have so far yielded limited success. The company has struggled to attract enough clients to justify its expansion plans. However, under its current leadership, Intel is cautiously pushing forward with its foundry strategy, with the condition that clients commit to using its new 14A production technology.

Apple, which has historically been a long-term client of Intel, shifted to using its own custom-designed processors in its devices starting in 2020. This move was part of Apple's broader strategy to increase the use of in-house components. Despite this shift, Apple has expressed support for Intel's revival, with its CEO stating that competition in the chip industry is beneficial and that the company would be pleased to see Intel's resurgence.

Intel's efforts to secure investment from Apple come at a time when the company is facing intense competition and financial challenges. The company has implemented cost-cutting measures, including layoffs and delays in factory expansion, to address its deteriorating financial situation. However, investor sentiment towards Intel has improved since the government's investment, with the company's stock price rising by over 60% since August.

Intel's efforts to secure investment from Apple and other tech giants are part of a broader strategy to revive its business and regain its position as a leading player in the chip industry. The company's ability to attract external funding and partnerships will be crucial in determining its success in this endeavor. The discussions between Intel and Apple are still in the early stages, and there is no guarantee that a deal will be reached. However, if Apple decides to invest in Intel, it would be a significant vote of confidence in the company's revival efforts.