Intel calls on Apple for help

Intel has reportedly approached Apple seeking new investment, part of a plan to revive the iconic US chip company.

Intel CEO Lip-Bu Tan. Photo: Bloomberg .

Intel has reportedly approached Apple, seeking investment to revive the company. According to Bloomberg sources, the discussions are still in the early stages and could change or be canceled.

Nvidia previously announced a $5 billion investment in Intel, deepening cooperation in the field of personal computer chips and data centers. In August, Japan's SoftBank Group also announced a $2 billion investment in Intel in an effort to expand operations in the US.

If it comes true, the deal with Apple would be the clearest demonstration of Intel’s strategy to revive the company. Bloomberg sources said Intel has also contacted a number of other companies to seek investment and cooperation.

Apple has been a long-time Intel customer, before switching to its own processors for computers in 2020. However, the possibility of Apple returning to Intel chips is very low. Currently, the new generation of chips on iPhones and Macs are manufactured by TSMC.

With the backing of US President Donald Trump, CEO Lip-Bu Tan is looking to restore Intel's position. In August, the US bought about 10% of the chipmaker's shares. Intel is seen as a key part of the strategy to increase domestic production.

Even with financial support, Intel still faces many difficulties. In addition to losing market share to competitors, the company is also lagging in the field of AI, Nvidia's strength. Financial instability has caused Intel to lay off employees and postpone plans to expand its factories.

Investors are more optimistic about Intel’s future after receiving support from the US government . The company’s stock has increased more than 60% since the beginning of August.

Apple CEO Tim Cook. Photo: Bloomberg .

Intel has continued to pursue a more cautious manufacturing strategy since the reign of former CEO Pat Gelsinger. In July, Lip-Bu Tan said the company would only deploy its newest manufacturing process, called 14A, if customers committed to using it.

Apple and Intel are longtime partners. Like Intel, Apple has also shown a commitment to investing in the US, even though the majority of its manufacturing still takes place overseas.

At a White House event in August, Apple announced plans to invest $600 billion in the US over four years, up from a previous $500 billion commitment. The centerpiece of the plan is a $2.5 billion investment in Corning, Apple's longtime supplier of tempered glass.

Sharing with CNBC host Jim Cramer, CEO Tim Cook said Apple's moves will encourage many other companies to boldly invest, creating a "domino effect".

When asked about Intel, Cook said competition would make the chip industry better. He also expressed that he “would love to see Intel back.”

Source: https://znews.vn/intel-cau-cuu-apple-post1588341.html