Intel courts Apple and TSMC for investment as US government's 10% stake accelerates comeback bid
Sep 25, 2025
Key Points
- Intel CEO Lip Bu Tan is courting Apple and TSMC for investments or manufacturing partnerships, accelerated by the US government's recent 10% stake and Trump administration pressure on tech companies to support domestic chipmaking.
- Nvidia invested $5 billion with a provision for Intel to design hardware integrating Nvidia's chips, while SoftBank committed $2 billion, addressing Intel's core crisis of advanced fabs sitting idle with no customers.
- An Apple-Intel deal would likely function as a political gesture or position Apple as a secondary fab partner for future chip designs, given Apple already moved off Intel processors and sources directly from TSMC.
Summary
Intel CEO Lip Bu Tan is courting Apple and TSMC for investments or manufacturing partnerships as the chipmaker executes a comeback bid. The push intensified after the US government took a 10% stake in Intel last month, with Commerce Secretary Howard Lutnick and others in the Trump administration urging tech companies to support the struggling semiconductor manufacturer.
Tan has met with Apple CEO Tim Cook and spoken to TSMC counterpart C.C. Wei about potential deals. SoftBank invested $2 billion and Nvidia invested $5 billion. Nvidia's commitment includes a provision for Intel to design new hardware integrating with Nvidia's chips.
Apple's interest
Apple moved off Intel chips years ago and now sources Apple Silicon direct from TSMC. Apple's server and data center operations still run Intel chips, but the overlap is minimal. An Apple investment could serve as political support for the administration's domestic semiconductor agenda while Apple maintains its TSMC relationship. Alternatively, Intel could become a secondary fab partner for future Apple chip designs, with Apple's capital helping Intel's new manufacturing nodes reach competitive maturity.
The utilization crisis
Intel's core problem is one Tan acknowledged on recent earnings calls. The company has cutting-edge fabs sitting idle while burning cash. Apple or TSMC capital combined with a long-term manufacturing commitment would address both the liquidity and utilization crises at once, though whether Intel can deliver at required performance levels remains uncertain.
Intel stock has surged roughly 20% in recent days on news that major tech players are engaging in talks. The administration's backing frames potential investments as national interest rather than pure business calculation.