Could former major client Apple become a "savior"? Intel issues a "heroic invitation" seeking investment to aid its revival

According to informed sources, chip manufacturer Intel Corporation (INTC.US) has extended an invitation to Apple Inc. (AAPL.US) for potential investment. Currently, Intel is facing poor operating conditions and is partially owned by the U.S. government; this investment solicitation is one of its measures to boost business.

The aforementioned sources indicated that Apple and Intel are also discussing "deepening cooperation." At the same time, the sources emphasized that the negotiations are still in the preliminary stages and may not ultimately result in an agreement.

On Wednesday, Intel's stock price rose by 6.4% in U.S. markets, closing at $31.22; Apple's stock price, on the other hand, fell slightly by less than 1%, closing at $252.31.

If Apple and Intel reach an investment agreement, it will represent another significant external support for Intel in recent times. Last week, NVIDIA Corporation (NVDA.US) announced a $5 billion investment in Intel and plans to collaborate with Intel on developing personal computer and data center chips; last month, Japanese tech giant SoftBank Group Corp. also announced a $2 billion investment in Intel to further expand its presence in the U.S. market.

The sources also added that Intel is simultaneously engaging with other companies to explore potential investment and cooperation opportunities.

Apple was once a long-term customer of Intel but has shifted to using self-developed processors over the past five years. If Apple chooses to invest in Intel this time, it would be an important recognition of Intel's "revival plan." However, it is unlikely that Apple will resume using Intel processors in its devices—currently, the most advanced chips for this iPhone manufacturer are produced by its partner TSMC (TSM.US).

An Intel spokesperson declined to comment on the matter, and an Apple spokesperson also did not respond to requests for comment.

Revival Challenges Under Government Endorsement

Intel CEO Lip-Bu Tan is pushing for the company's revival with support from the U.S. federal government. In August of this year, in an unconventional deal facilitated by the Trump administration, the U.S. government acquired approximately 10% of Intel's shares. For the White House, revitalizing domestic chip production is a core priority, and Intel is seen as a key component of this plan.

Even with financial support, Intel faces significant challenges. The company, headquartered in Santa Clara, California, has lost its long-standing technological advantage, with market share taken by competitors such as Advanced Micro Devices Inc. Additionally, amid the booming sales of artificial intelligence devices, Intel has failed to seize opportunities in this area, which is NVIDIA's specialty.

Once a "chip giant," Intel's current sales and market value are only a small fraction of NVIDIA's. In response to deteriorating financial conditions, Intel has implemented layoffs and postponed factory expansion plans.

However, since receiving government funding, investor sentiment towards Intel's prospects has become increasingly optimistic. From early August to now, Intel's stock price has risen by over 60%.

Cautious Advancement of the Foundry Strategy During the tenure of former CEO Pat Gelsinger, Intel planned to transform into a "foundry," producing semiconductors for external customers. However, the company has consistently failed to secure enough clients to support its factory expansion plans.

Nevertheless, under the leadership of Chen Liwu, Intel is still advancing its foundry strategy, albeit with a more cautious approach. In July of this year, Chen Liwu stated that the launch of Intel's new generation advanced manufacturing technology, named "14A," is contingent upon having customers who clearly commit to adopting the technology.

Apple and Intel's "Complex Past"

Apple and Intel have a long history of collaboration, marked by friction. For many years, Apple's Mac computers have used Intel chips, but starting in 2020, Apple began to gradually move away from this supplier—part of Apple's overall strategy to "expand the use of self-developed components." Additionally, in 2019, Apple acquired most of Intel's modem chip business.

Today, although Apple's production is still primarily concentrated overseas, it has been committed to demonstrating its investment in the U.S. At a White House event in August, Apple announced plans to invest $600 billion in domestic projects over the next four years, up from a previously promised $500 billion. A core initiative of this expansion plan is a $2.5 billion investment in long-term glass supplier Corning Inc.

Apple CEO Tim Cook stated in an interview that these investments will encourage other companies to increase production in the U.S., creating a "domino effect."

When asked about his views on Intel, Cook remarked that competition is beneficial for the chip foundry industry and stated, "We are happy to see Intel make a comeback."