From US financial investor

Intel hopes for important billion-euro cash injection

Intel in crisis: demand for classic PC and server processors is falling.

(Bild: Intel)

According to a report, the struggling US chip company Intel could soon receive a financial injection. According to insiders, the US financial investor Apollo Global Management is considering an investment of up to five billion dollars in the semiconductor manufacturer.

This was reported by the Bloomberg agency on Sunday, citing a person familiar with the matter. Apollo has signaled in recent days that it is prepared to invest billions of dollars in Intel.

This would correspond to a company-like participation. According to the report, Intel managers are currently examining Apollo's proposal. However, the talks have not yet been concluded. Both the size of the potential investment and the deal as a whole could still change or fall through, the report added. Neither Apollo nor Intel initially responded to a Reuters request for comment.

Rival Qualcomm submitted takeover bid
Earlier this year, Apollo announced that it would acquire a 49 percent stake in a joint venture for Intel's new production facility in Ireland for eleven billion dollars. On Friday, it also became known that competitor Qualcomm had expressed an interest in acquiring Intel.

Qualcomm CEO Cristiano Amon is said to be personally involved in the negotiations, but the talks are still at an early stage and no offer has yet been made. A takeover bid by Qualcomm for Intel would be the largest takeover attempt in the industry since 2018, when Broadcom wanted to buy Qualcomm for 142 billion dollars. However, then US President Donald Trump prevented this on the grounds of national security.

Share price plummeted by 57 percent
Intel, once the world's largest chip manufacturer, is currently in a difficult situation. After the smartphone revolution, the company has now also largely missed out on the boom in artificial intelligence (AI) and is struggling with falling demand for traditional PC processors. Intel shares have already lost 57% of their value this year.

Intel recently postponed the construction of a planned chip factory in Magdeburg by two years. The project, with a planned investment volume of 30 billion euros and around 3,000 jobs, was originally scheduled to start production in 2027.