Intel and Apple: A Possible New Partnership on the Horizon

According to reports, Intel has contacted Apple regarding an investment to strengthen the struggling business of the chip manufacturer, part of which is already in the hands of the US government. These discussions aim to intensify collaboration with Apple, although the negotiations are still at a very early stage and a final agreement is uncertain. Following this news, Intel's shares rose by 6.4% to $31.22, while Apple shares slightly fell by less than 1% to $252.31. Such a deal could follow Nvidia's recent $5 billion investment, which aims to work with Intel on chips for PCs and data centers. Additionally, SoftBank announced a $2 billion investment in Intel last month to expand its presence in the US. The chip manufacturer is also seeking further corporate collaborations and investments to regain its market dominance. A partnership with Apple might have more symbolic significance, as Apple switched from Intel processors to its own developments a few years ago. Apple's advanced chips are now manufactured by Taiwan Semiconductor Manufacturing Co. Intel CEO Lip-Bu Tan is attempting a fresh start with government support. The US government acquired about a 10% stake in the company in August to boost domestic production, while competition from Nvidia and Advanced Micro Devices remains significant. Although Intel has lost market share and technological leadership in recent years, recent investments and partnership talks have boosted investor confidence, reflected in a more than 50% increase in the stock since August. Meanwhile, Apple is striving to increase investments in the US despite predominantly overseas production and announced plans to spend $600 billion on US initiatives over four years. This includes a $2.5 billion investment in Corning, Apple's longtime glass supplier. In a CNBC interview, Apple CEO Tim Cook expressed optimism that such investments will encourage other companies to produce in the US as well, speaking of a potential "domino effect.