Intel is working hard on a comeback after years of struggle in the semiconductor market. Once a leader, it fell behind rivals like NVIDIA and lost Apple as a customer in 2020. Now, Intel is trying to rebuild its position and is seeking investment from the Cupertino-based tech giant to stay in the race.
Intel wants Apple’s investment to push its comeback
According to a report published by Bloomberg, Intel is in early talks with Apple about a possible investment plan. The discussions are still in the initial phase and may not necessarily lead to a final deal. However, this move surely reveals Intel’s commitment to making a comeback in the market.
As a part of its comeback plan, Intel has attracted major funding from other companies across the globe. NVIDIA, one of its rivals, invested around $55 billion for a stake in the company. Softbank has also proposed $2 billion investment, and the US government has also taken a 10% equity position in the firm. While these investments will surely boost the company’s financials, it now needs customers for its foundry business.
The Intel-Apple deal is special because, if Apple decides to invest in Intel, it would become the company’s biggest business partner. Apple currently relies on TSMC for the manufacture of its M and A-series chipsets. This deal might very well push it to diversify its chipset supply chain by adding another American manufacturer.
Intel-Apple deal is more than an investment
As said earlier, the company is already good in terms of finances. But it needs customers to push its comeback. Apple’s support might very well bring the much-needed demand for its most advanced chip-making process, called 14A. Without big customers like Apple, Intel may struggle to make a comeback or become a leader in the semiconductor business again.
However, the road ahead is tough for Intel. It lost ground when Apple shifted to its own silicon in 2020, and catching up with TSMC will take time and money. Industry analysts suggests that Intel should try to regain the confidence of its potential customers before pushing for other financial deals.