Intel is caught in a whirlwind of activity, with a potential multi-billion dollar investment from Apollo Global Management, a Qualcomm takeover bid, and a desperate need to regain its footing in the semiconductor market. This all comes at a time when Intel is experiencing its most significant challenges in its 50+ year history.
Apollo Group, managing assets worth nearly $350 billion, is proposing an “equity-like” investment of up to $5 billion in Intel. This investment could breathe life into Intel’s struggling turnaround strategy. Meanwhile, Intel is eligible for $3.5 billion in federal grants to manufacture semiconductors for the US military, a lifeline amidst its financial struggles.
However, Intel’s path forward is fraught with challenges. It has lost crucial chip deals, including the next-generation PlayStation 6, to AMD. Its desktop, server, and high-performance computing (HPC) market share has dwindled, and it’s struggling to make a mark in the competitive discrete GPU market. Adding to the pressure, Intel has made significant job cuts (over 15,000) and taken other cost-cutting measures, including halting construction on its fabs in Poland and Germany for two years. The company is also delaying the operationalization of new advanced packaging facilities in Malaysia, citing “market conditions.”
Despite these challenges, Intel is not without its strengths. It has secured Amazon and Broadcom as customers for its new Intel 18A process node, which is compatible with TSMC’s upcoming 2nm process node. This node is expected to power the A20 Pro chipset in the next generation iPhone 18 Pro and iPhone 18 Pro Max. Adding to the intrigue, reports suggest that Qualcomm is interested in acquiring Intel, with CEO Cristiano Amon reportedly leading the charge.
The coming months will be crucial for Intel. CES 2025 could be a turning point, but CES 2026 could be the time when we truly see the impact of these events on Team Blue. The future of Intel is uncertain, but one thing is clear: the company is at a crossroads, fighting for its relevance in a rapidly changing technological landscape.
