Intel seeking investment from Apple as part of comeback bid, say sources

Intel has approached Apple about securing an investment in the ailing chipmaker, according to sources familiar with the matter, part of efforts to bolster a business that is now partially owned by the US government.

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Apple and Intel have also discussed how to work more closely together, said the people.

The talks had been in an early stage and may not lead to an agreement, they said.

Shares of Intel jumped 6.4 per cent to US$31.22 on Sept 24 in New York after Bloomberg News reported on the discussions. Apple closed down less than 1 per cent at US$252.31.

Such a deal would follow a US$5 billion (S$6.4 billion) investment last week by Nvidia, which plans to work with Intel on chips for personal computers and data centres.

SoftBank Group, the Japanese tech giant seeking to expand further in the US, announced a US$2 billion investment in Intel in August.

Intel has also reached out to other companies about possible investments and partnerships, the sources 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.