Intel and AMD Explore Manufacturing Partnership Amid Market Movements

San Jose, California — October 02, 2025 — Intel is reportedly in early discussions with Advanced Micro Devices (AMD) regarding a potential partnership that would see Intel manufacture chips for its rival. This partnership could mark a significant turn in the semiconductor industry as AMD has traditionally relied on Taiwan’s TSMC for chip production.

The news comes amid a volatile market period for Intel, whose shares jumped 3.8% following the report. Investors view the partnership as a validation of Intel’s foundry capabilities, signaling confidence in the company’s new leadership under CEO Lip-Bu Tan.

A source familiar with the matter indicated that a deal could represent a major vote of confidence for Intel’s foundry business. Securing AMD as a client would not only enhance Intel’s standing in the competitive landscape but also provide AMD with a US-based manufacturing alternative.

As of now, it remains unclear how much production AMD would shift to Intel. AMD spokesperson has stated that the company does not comment on rumors or speculation. For Intel, this potential contract could spur innovation and further investment in their manufacturing technology.

Intel’s stock price has shown a stark rise, up nearly 77% year-to-date, reflecting growing investor confidence. Meanwhile, Intel has attracted several significant investors recently, viewed as a positive signal for its future.

Analysts suggest that if AMD engages Intel’s manufacturing services, it could serve to bolster the foundry business, which is currently on the lookout for major clients. Such a partnership could also influence other chip companies’ perceptions of Intel’s manufacturing capabilities.