TLDR
- Intel rose ~3.4% in premarket trading to $99.06 following a Bloomberg report of exploratory chip-manufacturing talks with Apple.
- Apple is reportedly in early-stage discussions with both Intel and Samsung about producing core processors for its devices.
- Apple executives visited Samsung’s new Texas semiconductor fabrication facility, currently under construction.
- The talks reflect Apple’s push to reduce its heavy reliance on Taiwan Semiconductor Manufacturing (TSM).
- No deal has been confirmed; both Intel and Apple declined to comment.
Intel has been on a quiet mission to turn its foundry unit into a serious business. On Tuesday, it got a potential breakthrough — at least on paper.
Bloomberg reported that Apple has held exploratory discussions with Intel about using its chip-manufacturing facilities to produce processors for Apple devices. The news sent Intel up 3.4% in premarket trading, with the stock hitting $99.06.
That move helped Intel recover losses from the previous session, which had been rough going for the stock.
Intel and Apple both declined to comment when contacted Tuesday morning. Samsung, which is also reportedly in talks with Apple, did not respond either.
Samsung Also in the Mix
Apple’s outreach isn’t limited to Intel. The company has also been in contact with Samsung, according to Bloomberg. Apple executives reportedly visited Samsung’s new semiconductor fabrication plant, currently under construction in Taylor, Texas.
Samsung’s stock reacted strongly. In Seoul, it closed up 5.4% at a record high of KRW232,500.
The reported discussions are still early stage and no decisions have been made, the Bloomberg report noted.
Intel’s Foundry Needs a Win
Intel has poured billions into building out its foundry business, positioning itself as a U.S.-based alternative to Taiwan Semiconductor Manufacturing. But so far, it has struggled to land major external clients.
Its most notable partnership to date is with Elon Musk’s Terafab, set up to serve Tesla and other Musk-related companies. The details of that arrangement remain unclear.
An Apple deal would be on a completely different scale. Apple uses custom-designed chips — known as its M and A-series processors — across iPhones, iPads, and Macs. Those are currently manufactured almost entirely by TSMC.
Bloomberg specifically noted the discussions include the possibility of Intel producing Apple’s main processors, which would be the most valuable type of contract Intel could win.
Intel was highlighted as a Barron’s stock pick last month when the stock was trading around $64. It has moved up considerably since then.
TSMC edged up 0.99% on Tuesday. The company has long been Apple’s go-to manufacturer and remains the dominant player in advanced chip production.
Apple’s reported push to diversify its chip supply chain comes as the broader tech industry has been rethinking single-supplier dependencies.
Whether either Intel or Samsung ultimately lands Apple business remains to be seen. For now, the market has decided the rumor alone is worth something.
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