Intel eyes Apple investment to support struggling chip business
Intel Corp. has reportedly approached Apple Inc. about making an investment in the ailing chipmaker, according to sources familiar with the matter, as part of efforts to support a business now partially owned by the U.S. government.
Apple and Intel also have discussed how to work more closely together, said the people, who asked not to be identified because the deliberations are private. The talks have been early-stage and may not lead to an agreement, the people said, News.Az reports, citing Reuters.
Shares of Intel rose 6.4% to $31.22 on Wednesday in New York after Bloomberg News reported on the discussions. Apple closed down less than 1% at $252.31.
Such a deal would follow a $5 billion investment last week by Nvidia Corp., which plans to work with Intel on chips for personal computers and data centers. SoftBank Group Corp., the Japanese tech giant seeking to expand further in the US, announced a $2 billion investment in Intel last month.
Intel also has reached out to other companies about possible investments and partnerships, the people said.
A deal with Apple, a longtime Intel customer that switched to in-house processors in the past five years, would represent further validation of the chipmaker’s turnaround bid. Still, it’s unlikely that Apple would switch back to Intel processors in its devices. The iPhone maker’s most sophisticated chips are now produced by partner Taiwan Semiconductor Manufacturing Co.
Similar news
