This information immediately spread across all the most important portals in the USA. Reuters, quoting “WSJ”, notes that this constitutes a significant boost to the chipmaker's efforts to revitalize its manufacturing operations.
As reported in the article, citing people familiar with the matter, the companies had been in intensive talks for over a year.
In reaction to the news, Intel shares rose 15 percent, while Apple shares gained about 1.7 percent.
See also: AI won't take our jobs. He will do something much more uncomfortable
The media indicate that concluding an agreement with Apple will provide Intel with constant demand from one of the world's largest companies in the consumer electronics industry, strengthening both its reputation and production activitieswhich has lagged behind TSMC in recent years.
The U.S. government, which became Intel's largest shareholder last year as part of a deal with its CEO Lip-Bu Tan, was expected to play a significant role in bringing Apple to the negotiating table.
It is not entirely clear what Apple products Intel would produce chips for. The main stakeholders have not commented on the case so far.
Apple is diversifying production
“For Apple, a deal with Intel could mean production diversificationgiving it the opportunity to secure greater production capacity, as it was previously dependent on the very limited production capacity of TSMC,” notes Reuters.
See also: This is the end of one of Apple's most profitable products
During its latest earnings conference call, Apple CEO Tim Cook said iPhone sales were being held back by supply constraints at the contract manufacturer.
Over the past year, Intel has struck deals with the U.S. government and secured investments from artificial intelligence chip giant Nvidia and SoftBank as part of CEO Lip-Bu Tan's push to turn around the chipmaker.
