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AMD in Talks with Intel to Manufacture Chips at Intel Foundry
It looks like AMD and Intel might be exploring one of the most unexpected partnerships in years. According to a new report from Semafor, AMD is in early talks with Intel about using Intel Foundry Services to manufacture some of its chips.
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It looks like AMD and Intel might be exploring one of the most unexpected partnerships in years. According to a new report from Semafor, AMD is in early talks with Intel about using Intel Foundry Services to manufacture some of its chips. Normally, AMD relies almost entirely on TSMC for production, so shifting even part of its manufacturing to Intel would be a big move. The last time the two companies worked closely together was the Kaby Lake-G project, where Intel CPUs were paired with AMD graphics. The report doesn't reveal how much of AMD's future production might go to Intel. It could be a small backup arrangement or something larger, depending on how the talks develop. What's clear is that Intel is actively looking for new foundry customers to support its investments in advanced process nodes like 18A. Intel's current CEO, Lip-Bu Tan, has even suggested that the company might scale back or cancel 18A if demand doesn't meet expectations. Having a major customer like AMD onboard could give Intel more confidence to push forward.
The backdrop here is a surge of activity around Intel in recent weeks. The U.S. government has taken a 9.9% ownership stake in Intel, while SoftBank has invested $2 billion, and Nvidia has both partnered with Intel on new x86 chips and purchased $5 billion worth of Intel shares. Reports also indicate Intel has spoken with Apple about possible collaborations. All of this points to Intel trying to position itself not just as a chip designer, but as a go-to manufacturing partner for the wider industry.
For AMD, working with Intel could make sense from a supply chain perspective. The U.S. government has been pushing for 50% of chips sold in America to be produced domestically, and relying solely on TSMC leaves AMD exposed to both geopolitical and logistical risks. Earlier in 2025, AMD also faced U.S. export restrictions on some of its GPUs bound for China, adding another reason to consider diversifying its production strategy.
The challenge is that Intel's foundry technology still lags behind TSMC at the leading edge, so AMD would likely treat Intel as a secondary manufacturing option rather than a full replacement. Still, having Intel as a backup could provide insurance if AMD ever faced supply constraints or political hurdles. At the same time, it would validate Intel's ambition to manufacture chips for its competitors, a vision first outlined by former CEO Pat Gelsinger.
Neither company has commented on the report, so the talks could remain exploratory for now. But if AMD and Intel do reach a deal, it would be one of the most surprising twists in the semiconductor industry, showing how much government policy, global competition, and supply chain security are reshaping old rivalries.
