Intel could potentially be on Apple's acquisition portfolio amid financial struggles, emancipating itself from an overreliance on TSMC for chips — but Samsung could have better standing

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Apple could reportedly buy Intel amid its financial struggles, fostering its new AI strategy and freeing itself from an overreliance on TSMC for chips.

The Intel logo is displayed on the screen of an iPad.
 Intel logo is displayed on the screen of an iPad.  (Image credit: Getty Images | SOPA)

What you need to know

  • A new report suggests Intel could be on Apple's acquisition alley to bolster its AI advances.
  • The report also suggests that Samsung has better standing to acquire Intel out of the possible takeovers, including Qualcomm and Apple.
  • If Apple closes the deal, it could free itself from an overreliance on TSMC for chips.

Intel has found itself between a rock and a hard place over the past few months. Its problems can be traced back to CEO Pat Gelsinger announcing the firm's decision to lay off 15,000 employees in unprecedented cuts that could see the chipmaker attempt $10 billion in savings through 2025.

The firm's financial struggles have spread like wildfire, opening it up to potential outsider interference and hostile takeovers. Speaking of takeovers, Tom S. discussed the possibility of Apple acquiring Intel at the Moore's Law Is Dead YouTube channel (via Tom's Guide).

Perhaps more interestingly, Apple isn't the only major tech corporation looking to acquire Intel. Samsung is also interested in acquiring or, at the very least, merging with the chipmaker.

As you may know, Intel and AMD announced a collaboration, forming the x86 Ecosystem Advisory Group at the just-concluded Lenovo Tech World 24 conference. This could be an attempt to keep up with Qualcomm's flagship Snapdragon Elite chips, which ship with Microsoft's Copilot+ PCs to power next-gen AI features like Live Translations, Super Resolution, and more.

While Intel and Apple have yet to confirm if the rumors are true, the information should be taken with a grain of salt. Interestingly, Tom suggests Samsung is likely to come out on top as it's closer to striking a deal with the chipmaker. 

An Intel acquisition could bolster Apple's advances in AI

Arrow Lake Ultra 9 285K Analysis | Samsung Buying Intel Leak - YouTube Arrow Lake Ultra 9 285K Analysis | Samsung Buying Intel Leak - YouTube
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Compared to its competitors in the AI landscape, Apple is seemingly joining the fray a tad late. However, this is Apple's MO. As you may know, privacy and security concerns continue to mount as AI advances. 

It's possible that the iPhone maker held back from investing in AI to maintain its privacy and security stature. This could be part of Apple's strategy, which suggests that while the company isn't always the first in line to hop on emerging trends, it often emerges as the best because of its execution.

To this end, Apple heavily relies on TSMC for chips. With the company announcing and launching its new AI strategy - Apple Intelligence, its demand for sophisticated AI chips will go high. Consequently, it'll have to spend vast sums of money to keep up with the ever-evolving technology amid investor concern over profit gains in the category. 

If Apple acquires Intel, the iPhone maker could free itself from an overreliance on TSMC for chips.

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Kevin Okemwa
Kevin Okemwa
Contributor

Kevin Okemwa is a seasoned tech journalist based in Nairobi, Kenya with lots of experience covering the latest trends and developments in the industry at Windows Central. With a passion for innovation and a keen eye for detail, he has written for leading publications such as OnMSFT, MakeUseOf, and Windows Report, providing insightful analysis and breaking news on everything revolving around the Microsoft ecosystem. You'll also catch him occasionally contributing at iMore about Apple and AI. While AFK and not busy following the ever-emerging trends in tech, you can find him exploring the world or listening to music.

1 Comment Comment from the forums
  • fjtorres5591
    This is weird...
    ...and fabulously amusing.

    As I said in the ARM/QUALCOMM thread:

    "Apple buying Intel?
    At first it sounds unlikely because Apple is too cheap to make a massive purchase like that. (And unless Khan is gone, FTC will go ballistic.)

    However...

    It makes so much sense even scrooge would open his purse:
    1- Apple is too dependent on TSMC for their chips. If China moves on Taiwan that'll be a double whammy, regardless of how fast they build up manufacturing in India and Vietnam.
    2- intel has first dibs on the next gen of super advanced chip lithography machines.
    3- intel controls x86 and through it one of the choke points of Windows hardware.
    4- x86 runs Android just fine so it stands to gain share as a fallback to ARM.
    5- intel is only third in GPU architectures but they're improving and working hard on NPUs
    6- Apple switches architectures at the drop of a hat so instead of ARM being able to threaten them, they can threaten to bolt if they don't like their terms. Or if they like total vertical integration.
    7- The entire WinTel market would be very uncomfortable.
    7a- To add to the fun, for decades every time intel got "uppity" with MS, they would mutter about buying AMD and the partnership would get back on the same page. MS might feel forced to pull the trigger this time.
    7b- Sony would be very very uncomfortable.

    Just the thought is popcorn worthy. Enough to spark a three-way bidding war between Apple, MS, and Samsung. Maybe others might be tempted to jump in..."

    As fun as it is to speculate, Intel is too important to too many major players for this deal to be allowed...not be the feds but by the various "interested parties".

    A rescue package strikes me as most likely, either taking it private or in exchange for equity.
    Reply