TLDR
- Intel shares rallied 8.7% Tuesday on unconfirmed reports of manufacturing chips for Apple’s MacBook Air and iPad Pro
- Analyst Ming-Chi Kuo says Intel could start shipping Apple’s lower-end M processors by Q2 2027
- Intel revealed over $200 million in new Malaysia investments to expand semiconductor operations
- The company’s Penang facility is 99% complete following a $7 billion initial investment in 2021
- Malaysia handles 13% of global chip assembly, testing, and packaging work
Intel stock climbed 8.7% during Tuesday’s trading session as rumors of a potential Apple partnership excited investors. The gains came even as broader markets posted modest increases.
Intel Corporation, INTC
TF International analyst Ming-Chi Kuo sparked the rally with claims on X that Intel will produce processors for Apple. According to Kuo, Intel would manufacture lower-end M chips used in MacBook Air and iPad Pro devices. The first shipments could arrive by the second quarter of 2027.
Neither Intel nor Apple has confirmed the report. But the market reaction shows how hungry investors are for good news about Intel’s turnaround.
Intel dominated the chip industry for decades with its CPU technology. The company has struggled to keep pace in the AI revolution, which depends more on GPU processing power. Landing Apple as a manufacturing customer would validate Intel’s production capabilities at a critical time.
The chipmaker faces headwinds beyond just winning new business. Intel has slashed its workforce and watched key engineers leave for rivals. Yet a deal with Apple could provide the momentum needed to stabilize operations.
Malaysia Investment Strengthens Global Footprint
Intel also announced new investments exceeding $200 million in Malaysia. The commitment came during a meeting between Intel CEO Lip-Bu Tan and Malaysian Prime Minister Anwar Ibrahim.
The prime minister shared details on Facebook, confirming Intel’s expansion of assembly and testing facilities. Intel’s advanced Penang complex is now 99% complete after receiving $7 billion in 2021.
Malaysia plays a growing role in semiconductor manufacturing. The country accounts for roughly 13% of worldwide chip assembly, testing, and packaging operations.
Tech Giants Bet on Malaysia
The Malaysian government is pushing to attract more advanced manufacturing projects. Microsoft, Google, and ByteDance have all committed billions to AI infrastructure investments in the country recently.
Companies want alternatives to China-dependent supply chains. Malaysia offers established facilities and strong government backing for the tech sector. Infineon and other major chip companies already run operations there.
Intel’s latest $200 million commitment fits into a broader strategy to rebuild its manufacturing empire. The Penang facility will add production capacity just as Intel pursues major customers like Apple.
The timing works in Intel’s favor. Global demand for semiconductors continues growing as AI applications expand. Having diversified manufacturing locations gives Intel flexibility to serve different markets and clients.
The Apple rumors remain unverified, but Intel’s Malaysia expansion is concrete. Construction of the Penang plant is nearly finished. Once operational, the facility will strengthen Intel’s position in the region while supporting the company’s efforts to regain market share from competitors like TSMC and Samsung.
Intel stock closed Tuesday at higher levels as investors weighed both the speculative Apple partnership and confirmed Malaysia investments.
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Source: https://blockonomi.com/intel-intc-stock-gains-on-malaysia-expansion-and-potential-apple-deal/