Key Points
- Intel shares climbed approximately 3.4% to $99.06 in premarket trading after Bloomberg disclosed exploratory chip production discussions with Apple.
- Apple has initiated preliminary conversations with Intel and Samsung regarding the manufacturing of core processors for its product lineup.
- Samsung’s new Texas-based semiconductor manufacturing plant received a visit from Apple executives during its construction phase.
- The discussions signal Apple’s strategic initiative to diversify away from its significant dependence on Taiwan Semiconductor Manufacturing (TSM).
- Neither company has confirmed any agreement; both Intel and Apple have refused to provide official statements.
Intel has been working steadily to transform its foundry division into a competitive force in the semiconductor manufacturing space. Tuesday brought what could represent a significant opportunity for that effort.
According to Bloomberg’s report, Apple has engaged in preliminary talks with Intel about utilizing its manufacturing capabilities to fabricate processors for Apple’s device ecosystem. The revelation drove Intel shares up 3.4% in premarket activity, reaching $99.06.
This upward movement erased losses Intel had suffered during the prior trading session, which had proven challenging for shareholders.
Intel and Apple both refused to provide statements when approached by reporters on Tuesday morning. Samsung, which Bloomberg also identified as being in discussions with Apple, similarly offered no response.
Samsung Emerges as Additional Potential Partner
Apple’s search for manufacturing partners extends beyond Intel. Bloomberg’s sources indicate the company has established contact with Samsung as well. Representatives from Apple reportedly toured Samsung’s semiconductor production facility currently being built in Taylor, Texas.
Samsung’s stock responded enthusiastically to the news. Shares in Seoul advanced 5.4% to close at a record KRW232,500.
Bloomberg emphasized that these conversations remain in nascent stages with no commitments or final determinations reached.
Intel’s Foundry Division Seeks Major Client
Intel has invested substantial capital in expanding its foundry operations, attempting to establish itself as a domestic manufacturing option compared to Taiwan Semiconductor Manufacturing. The company has faced difficulties securing major outside customers thus far.
The most significant partnership Intel has announced involves Elon Musk’s Terafab, designed to support Tesla and additional Musk ventures. Specifics about that collaboration remain largely undisclosed.
Securing Apple as a client would represent an entirely different magnitude of opportunity. Apple designs proprietary processors — its M and A-series chips — that power iPhones, iPads, and Mac computers. TSMC currently produces virtually all of these components.
Bloomberg’s report specifically indicated conversations encompass the potential for Intel to manufacture Apple’s primary processors, representing the highest-value contract type Intel could secure.
Barron’s featured Intel as a recommended stock selection last month when shares traded around $64. The stock has appreciated substantially in the weeks since.
TSMC shares increased 0.99% on Tuesday. The company has maintained its position as Apple’s primary manufacturing partner and continues to dominate advanced semiconductor production globally.
Apple’s apparent effort to broaden its chip manufacturing base reflects wider industry trends toward reducing concentration risk with single suppliers.
Whether Intel or Samsung eventually secures production contracts from Apple remains uncertain. Market participants have determined that even unconfirmed reports carry significant value.
