Intel is trying to claw its way back into relevance with some big moves lately, such as its recently announced alliance with Nvidia. But there’s more going on behind the scenes, including some negotiations with AMD, according to a report by Semafor.
The aim of this Intel-AMD agreement would be to produce AMD chips in Intel’s own factories, known as foundries. (A foundry manufactures semiconductors according to customer designs.) Intel would therefore realize AMD’s designs, although both compete in the processor market.
The deal is not yet finalized and an agreement could take months, as further hurdles (such as regulatory reviews) are still pending.
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Why Intel wants AMD as a customer
Intel has been trying to catch up with the world’s leading chip manufacturer TSMC for years. TSMC currently produces most AMD chips with advanced 5nm or 3nm processes, while Intel’s current 18A process (comparable to 2nm) won’t be ready for series production until 2025. According to Semafor, Intel could initially produce less complex AMD chips due to its lack of high-end technology.
Nevertheless, AMD would be a prestigious customer that could bolster Intel’s ailing Foundry division. Nvidia has already invested $5 billion in Intel, and Apple has also been approached, which shows the widespread interest in Intel’s capacities.
A potential conflict between China and Taiwan—which is where TSMC is headquartered—makes US-based manufacturing attractive. On top of that, the US government is promoting domestic chip production through the CHIPS Act to further reduce dependence on Asia.
Intel CEO Lip-Bu Tan, who has been in office since March 2025, is pushing ahead with restructuring and cost-cutting measures as Intel is no longer among the top 10 chip manufacturers, especially in AI hardware. An AMD deal could also boost Intel’s share price, which rose by 3.5 percent following the news, and boost the US chip industry.
What does this mean for the industry?
This Intel-AMD partnership could also bring advantages for AMD, like reduced dependence on TSMC without giving up their cooperation entirely. For Intel, it’s a step towards profitability for its Foundry division, which is currently operating at a loss.
An Intel-AMD deal would be an historic development, and two major competitors working together could significantly strengthen the US market. It remains to be seen whether the deal will materialize, but one thing is clear: these talks are a signal of Intel’s ambitions.
This article originally appeared on our sister publication PC-WELT and was translated and localized from German.