Intel and AMD Discuss Potential Manufacturing Partnership

Santa Clara, California — Intel is in early-stage talks to bring AMD on board as a customer for its chip manufacturing facilities, according to sources familiar with the matter. This development could provide a boost for AMD, which has been struggling amid increasing competition in the semiconductor industry.

Over the past several weeks, Intel has attracted new investments and gained public backing from various stakeholders, indicating renewed confidence in the company’s direction. AMD, known for designing advanced chips primarily produced by Taiwan’s TSMC, has faced challenges in manufacturing its latest products.

It remains uncertain how much of AMD’s production would transition to Intel’s facilities if the agreement is finalized. There is also no indication whether AMD would invest directly in Intel to secure a manufacturing deal, similar to arrangements made by other companies. Sources caution that the discussions may not lead to a finished agreement.

Intel’s stock rose approximately 3.5% following the news and has increased 77% this year, reflecting growing investor interest. AMD, meanwhile, has a vested interest in maintaining favorable relations with the U.S. government, particularly after facing scrutiny concerning its significant sales in China.

Experts suggest that partnership with a rival like Intel may signify AMD’s confidence in Intel’s capabilities and could allow Intel Foundry to invest more effectively in improving its manufacturing processes. Such a move would also send a positive signal to potential clients regarding Intel’s readiness to handle their production needs.

As Intel aims to regain its footing in the semiconductor market, securing AMD as a client could bolster its foundry business aim amidst intensified competition, especially from Nvidia, which has pioneered advancements in AI chip technology.