After aligning with NVidia, Intel is now also courting investment from Apple, the world’s most valuable brand and maker of cellphone devices. The American chip maker has fallen way behind in market share as cheaper, nimbler facilities spread across Taiwan and Malaysia build various CPU alternatives. Qualcomm, for instance, has hardened its position with mobile CPU’s while Broadcom takes other key market segments.
History
More interestingly to this story, Apple was once a major client for Intel, receiving their CPU’s on their desktop and laptop computers. The industry faux-pas from Intel was rooted in their lack of pivoting to mobile devices as a main supplier. When Jobs famously approached the firm for better pricing on the Apple iPhone, the CPU maker would not budge, prompting Apple to look for alternative providers. Eventually, as we all know, they would settle on a broad range of CPU’s and making their own CPU’s for their devices.
Now, Intel is begging for investments to put it mildly but has the political favor of the White House. Thus, it is difficult to see Apple not providing some symbolic amount of investment in exchange for the optics of helping an American chip maker.
The chipmaker has shifted from foundry models to Taiwan and Asia, but the hope is they will build in the United States, where labor price, skill shortages and environmental concerns limit the ability for major foundries to be built.