Intel in Early Talks to Manufacture AMD Chips
Intel is reportedly engaged in preliminary discussions with AMD to manufacture chips for the latter through its foundry business, according to a report by Semafor. This potential collaboration marks a significant development in the semiconductor sector, where Intel is striving to expand its foundry client base. Intel’s stock surged 7% following the news, while AMD shares increased by over 1%, reflecting investor optimism around the potential partnership.
Strategic Implications for Intel and AMD
Securing AMD as a customer would represent a major win for Intel’s foundry business, which is actively seeking large-scale clients to justify further investment in advanced manufacturing technologies. Analysts suggest that such a partnership would signal to the broader semiconductor industry that Intel is capable of handling complex chip manufacturing tasks for leading competitors. For AMD, which competes directly with Intel in x86-based processors for PCs and servers, choosing Intel as a manufacturing partner would indicate a high level of confidence in Intel’s production capabilities despite their rivalry. However, the extent of AMD’s potential manufacturing volume with Intel remains unclear. Currently, AMD primarily contracts its chip production through Taiwan Semiconductor Manufacturing Company (TSMC).
Intel’s Growing Investor Confidence
Intel has attracted significant investment interest recently, including from the U.S. government, Nvidia, and Softbank. These investments are viewed as endorsements of Intel’s strategic turnaround under CEO Lip-Bu Tan, who took the helm with a focus on revitalizing the company’s manufacturing prowess. Despite Nvidia’s investment, the company has not committed to utilizing Intel’s foundry services, highlighting the competitive and cautious nature of the semiconductor foundry market. Intel’s stock has climbed nearly 77% year-to-date in 2025, underscoring growing investor confidence in the company’s business transformation.
“AMD does not comment on rumor or speculation,” an AMD spokesperson stated, declining to confirm the discussions.
An Intel representative also declined to comment on the matter.
FinOracleAI — Market View
The reported early talks between Intel and AMD could reshape dynamics within the semiconductor manufacturing landscape. Intel’s foundry business, long seeking marquee clients, stands to gain critical momentum if AMD commits to producing chips in its facilities. This partnership would not only validate Intel’s manufacturing capabilities but also enhance its competitive positioning against established foundry leader TSMC.
- Opportunities: Strengthening Intel’s foundry business with a high-profile client, attracting additional customers, and accelerating technology investments.
- Risks: Potential scale limitations if AMD maintains significant production with TSMC, and strategic sensitivities given AMD and Intel’s competitive relationship.
- Market sentiment appears positive, as evidenced by Intel’s strong stock performance and recent investor endorsements.
Impact: This development could be a pivotal catalyst for Intel’s foundry business expansion and overall market confidence, although confirmation and scale of the partnership remain key variables to monitor.
