This comes as chipmaker Intel faces troubled waters, with profit margin shrinking due to high competition in the manufacturing technology space and little success in the booming market for artificial intelligence (AI) chips.
Apple-Intel deal?
Apple had acquired Intel’s modem division in 2019, but this report suggests a full-scale takeover of the company. Tom, the YouTuber, reiterated in his video that these are just rumours.
The tech giant, whose powerful Mac laptops were powered by Intel chips, has since transitioned to its own silicon chips from 2020. Apple’s silicon chips are based on the ARM architecture and are used in many of Apple’s devices, including the iPhone, iPad, Apple TV, Apple Watch, AirPods, AirTag, HomePod, and Apple Vision Pro. Apple’s most recent chip is the M4, which was introduced in May 2024.
Intel’s woes
At a current market value of less than $100 billion, the longtime semiconductor industry leader has been at the center of discussions about a takeover or a breakup. Its share price has plunged 60% since Pat Gelsinger became CEO in February 2021. The company laid off over 17,000 staff this year to cut costs.
Discover the stories of your interest
The Silicon Valley company on October 31 said its loss for the third quarter totaled $16.6 billion, the biggest in its 56-year history, a result of $15.9 billion in charges to reflect lowered valuations of company assets and a $2.8 billion restructuring charge.The company missed out on the AI boom. Today, Nvidia is the unrivaled AI chip king and one of the most valuable corporations in the world, while Intel, once the semiconductor superpower, is reeling and getting no lift from the AI gold rush.
