Click the blue text above to follow me👆 Recently, the tech world has been buzzing.
Not because someone released a new phone, nor because a company laid off employees, but because Intel—once the undisputed giant in the computer chip industry—has been reported to be seeking investment talks with Apple.
Upon the news, Intel’s stock price surged over 6% in a single day, indicating that the market has significant expectations regarding this matter. It sounds a bit surreal.
After all, just a few years ago, Apple was one of Intel’s major customers, with Intel CPUs being used exclusively in Mac computers.
However, since Apple began developing its own chips, the relationship between the two companies has rapidly deteriorated.
Now, Apple’s iPhone, iPad, and Mac are all powered by chips designed in-house, with manufacturing outsourced to TSMC, effectively pushing Intel out of Apple’s supply chain. So why is Intel now turning back to Apple?
Will Apple actually invest?
Behind this, there lies a story of how an established tech company struggles to survive in a new era. Let’s first discuss Intel’s current situation.
Over the past decade, Intel has repeatedly stumbled in its technological roadmap. The process technology has been unable to break through, with the 7nm process being delayed and the 10nm process facing numerous issues.
Meanwhile, TSMC and Samsung have been racing ahead, rolling out 3nm and 2nm processes.
Major clients like Apple, NVIDIA, and AMD have all turned to TSMC, leaving Intel’s foundry business virtually ignored.
To make matters worse, Intel, which used to profit easily from selling CPUs, now has to compete head-on with AMD and NVIDIA, while also investing heavily in building factories, developing advanced packaging, and securing customer orders.
This work is both arduous and exhausting, and there’s no guarantee anyone will pay for it.
To stem the bleeding, Intel has already laid off employees, delayed factory construction, and cut expenses, but merely tightening the belt is clearly insufficient; it also needs to find new revenue sources—essentially, it needs to raise funds. Thus, Intel has begun to seek out investments.
First, the U.S. government intervened, acquiring about 10% of Intel’s shares through some unconventional means, tying Intel to the national strategy of “revitalizing American chip manufacturing.”
Next, SoftBank invested $2 billion;
then NVIDIA directly poured in $5 billion, also aiming to co-develop PC and data center chips.
Now, it’s Apple’s turn.
Many might wonder: why would Apple invest in Intel?
After all, it currently relies entirely on TSMC for its chips, with a very close partnership that leaves little room for Intel.
Moreover, Apple is typically cautious and rarely makes such strategic investments, especially in a former “partner.” However, upon closer examination, Apple has its own calculations. First, supply chain security.
Although Apple has a strong relationship with TSMC, putting all its eggs in one basket carries significant risks.
In recent years, global chip production capacity has been tight, and geopolitical tensions are complex; if TSMC encounters any issues, Apple’s production lines could come to a halt.
Therefore, Apple has been looking for a “backup plan.”
For instance, it previously acquired Intel’s 5G modem business, and now it might allow Intel to handle advanced packaging—not the entire chip, but the packaging stage after the chip is completed.
This could help Intel find business while also providing Apple with an additional technical option. Secondly, there’s political correctness.
Apple CEO Tim Cook has publicly stated his support for American manufacturing.
If Apple were to invest in Intel, it would not only demonstrate its support for the U.S. chip industry but also align with government industrial policies.
This kind of “killing two birds with one stone” is something Apple excels at. Of course, at this stage, both parties are only in preliminary discussions, and no agreements have been signed.
Insiders have repeatedly emphasized that negotiations are in the early stages and may not yield any results.
But even if it’s just a “talking stage,” the market is already excited.
Why? Because it signifies that Intel is finally starting to take its transformation seriously. In the past, Intel was a typical IDM (Integrated Device Manufacturer):
designing chips, manufacturing them, and selling them all by itself.
This model was successful in the 20th century, but today, it is inefficient, costly, and inflexible.
TSMC’s success has proven that the “specialized foundry” model is more viable—design the chips, and let someone else manufacture them, with everyone focusing on their own roles. Intel now wants to learn from TSMC and transform into a foundry.
However, it is starting late, with outdated technology and few customers, making it difficult to turn things around on its own.
Thus, it needs endorsements from major clients, strategic investments for cash flow, and support from top brands like Apple.
Even a small order from Apple would significantly boost Intel’s foundry business. However, this path is fraught with challenges.
TSMC has firmly established itself in the high-end market, and Samsung is also fiercely competing.
Intel not only has to catch up on technology but also needs to rebuild customer trust. And trust, once lost, is hard to regain. Interestingly, the push for this collaboration is being led by Intel’s new CEO, Lip-Bu Tan.
He does not come from a technical background but has an investment background, having previously been a partner at Walden International, where he invested in numerous semiconductor companies.
His appointment indicates that Intel needs not just technological breakthroughs but also capital operations and ecosystem integration. From this perspective, seeking investment from Apple is actually part of Tan’s overall strategy.
First, secure government support, then attract investments from NVIDIA and SoftBank, and finally aim for a terminal giant like Apple.
Step by step, transform Intel from an “isolated technology company” into an “industry node supported by multiple parties.”
Of course, the risks are significant.
If negotiations fall through or the collaboration yields poor results, market enthusiasm could quickly wane.
Moreover, Intel’s financial pressures remain heavy; whether it can truly halt its downward trend by 2025 will depend on subsequent actions. But regardless, Intel is moving in the right direction.
In today’s tech industry, going solo is no longer viable. Whether in chips, AI, or operating systems, ecosystem collaboration is essential.
Intel has realized it can no longer operate in isolation and is beginning to reach out, which is a positive development. For ordinary users, this may seem distant. However, it will affect every computer and smartphone we use in the future.
If Intel can successfully transform, the chip industry will have another option, potentially stabilizing prices and fostering healthier technological competition.
Conversely, if it continues to decline, with TSMC dominating, the entire ecosystem may become fragile. Returning to the initial question: will Apple invest in Intel? It’s unlikely to make a large controlling investment, but the possibility of a small-scale investment combined with foundry cooperation is quite high.
After all, for Apple, spending a little money to secure an alternative solution while boosting its image of “supporting American manufacturing” is a win-win. And for Intel, even securing a single packaging order from Apple would be a crucial step back into the mainstream ecosystem.
It doesn’t need Apple to revert to using Intel CPUs; it just needs to find a place within Apple’s vast supply chain again. Ultimately, competition in the tech industry has never been about who completely defeats whom, but rather who can adapt to changes more quickly and find their new role under new rules.
Intel was once the rule-maker; now it must learn to survive within others’ rules.
This is not easy, but it’s certainly better than waiting for death. So, don’t be too quick to write off Intel. A company that once dominated the PC era still has its foundation, talent, and manufacturing capabilities.
What it lacks is merely an opportunity and a bit of time. And Apple may just be the one to provide that opportunity.
(End of article)