Intel in Early Talks to Bring AMD as Customer for Chip Manufacturing

San Francisco, California – Intel Corp. is in early-stage discussions to potentially add Advanced Micro Devices (AMD) as a customer at its chip factories. This development could signal renewed confidence in AMD, which has faced numerous challenges in the competitive chip market.

The talks come amid a backdrop of significant investment and support for Intel from various stakeholders. Over the past several weeks, the company has garnered investment from notable entities, further bolstering its efforts to revive its manufacturing capabilities under new CEO Lip-Bu Tan.

AMD, which primarily relies on Taiwan Semiconductor Manufacturing Company (TSMC) for its chip production, may find opportunities for collaboration with Intel’s foundry services. However, it remains unclear how much of AMD’s manufacturing volume would shift to Intel if an agreement is finalized. Industry analysts have pointed out that a partnership could pave the way for Intel to bolster its foundry business.

Notably, representatives from both Intel and AMD have refrained from commenting on the discussions. Market reactions to the news showed a positive shift, with Intel shares rising approximately 3.5% following the reports, marking a year-to-date increase of about 77%.

Intel has been actively seeking relationships with potential customers and investors, hoping to regain its footing in the semiconductor market. While Intel historically held a dominant position, it has struggled to keep pace with advancements in AI chips largely driven by Nvidia.

A partnership with AMD would not only serve Intel’s business interests but would also reflect AMD’s trust in its largest competitor’s manufacturing capabilities. As the tech industry continues to evolve, the outcome of these discussions may have far-reaching implications for both companies.