Intel Corp. is stepping up its search for heavyweight partners as it attempts to engineer one of the most ambitious turnarounds in the history of the semiconductor industry. According to people familiar with the matter, the Santa Clara-based chipmaker has approached Apple Inc. about taking an equity stake in the company — a potential deal that would underscore Intel’s determination to rebuild its technological edge and secure fresh funding at a critical juncture.
The outreach to Apple is part of a broader push by Intel Chief Executive Lip-Bu Tan, who took the reins earlier this year with a mandate to restore the company’s standing in global chipmaking. Intel has already attracted major investments from Nvidia and SoftBank Group, which together have pledged $7 billion to partner with Intel on next-generation chips for PCs, data centers and artificial intelligence. With Washington also taking a direct stake — about 10% — as part of the Trump administration’s bid to strengthen domestic semiconductor production, Intel now has a rare mix of government support and private capital.
For Apple, the talks reflect a complicated relationship with its onetime supplier. Apple relied heavily on Intel processors for its Mac line until about five years ago, when it began transitioning to custom-designed chips manufactured by Taiwan Semiconductor Manufacturing Co. (TSMC). While analysts see little chance Apple will return to Intel silicon in its own devices, a financial partnership or joint development initiative could give Apple more diversified supply options and help Intel scale up new production technologies.
Shares of Intel jumped as much as 7.9% in New York trading Thursday after Bloomberg first reported the discussions, extending a 6.4% gain the previous day. Apple stock edged less than 1% higher to $253.71. Neither company has publicly commented on the talks. People familiar with the matter cautioned that discussions are at an early stage and may not lead to a formal agreement.
The push for outside investment comes as Intel faces mounting competitive pressures. Once the undisputed leader in microprocessor technology, Intel has ceded ground to rivals such as Advanced Micro Devices in CPUs and Nvidia in AI accelerators. The company has also been slower than expected to bring cutting-edge manufacturing nodes online, a lag that has hurt its margins and delayed key product launches.
With artificial intelligence driving a surge in demand for high-performance chips, Intel risks being left behind in the most lucrative segments of the market — a specialty now dominated by Nvidia. By teaming up with Apple and other deep-pocketed partners, Intel hopes to accelerate its transition to advanced process technologies, expand capacity at U.S. plants and regain relevance in AI workloads.
Government backing has added another layer of urgency. In August, the Trump administration brokered an unconventional deal that gave the U.S. a roughly 10% stake in Intel. Officials view the company as a linchpin of the effort to reinvigorate American chip production and reduce dependence on overseas supply chains, particularly in strategic sectors like defense and critical infrastructure.
Still, challenges remain formidable. Analysts note that financial support alone cannot solve Intel’s execution issues, which include regaining technological leadership from TSMC and rebuilding customer trust after years of delays. Others warn that Intel’s heavy reliance on government involvement could complicate partnerships with global firms, especially in sensitive technology areas.
For now, Intel is signaling that it is open to multiple forms of collaboration — equity stakes, joint ventures, and long-term supply agreements. A potential tie-up with Apple, even short of a processor comeback, would represent a powerful endorsement of Intel’s turnaround story and might spur additional investors to follow. Whether these talks yield a deal or not, they illustrate how dramatically Intel’s playbook has changed as it tries to reinvent itself for the AI era.
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