Intel is in talks to produce chips for AMD

Intel is in discussions with AMD to produce its processors in its own fabs in an effort to strengthen its market position and grow its Foundry business.

According to Semafor, talks are in the early stages and could take months as the deal has yet to pass regulatory scrutiny. If an agreement is reached, Intel will start producing some AMD chips under contract, even though the companies remain competitors in the processor market.

Semafor said the deal is in its early stages and could take months to finalize, as the deal has yet to pass regulatory scrutiny.

Amdm’s main manufacturer is Taiwan’s TSMC, which uses advanced 5nm and 3nm process technology. Intel is not yet ready to mass-produce on its 18A process (equivalent to 2nm), which won’t be available until 2025, so the company may start with less complex chips.

Amdm’s main manufacturer is Taiwan’s TSMC, which uses an advanced 5nm and 3nm process.

For Intel, partnering with AMD would be a significant move: the Foundry division remains unprofitable, but has already attracted $5 billion in investment from Nvidia, as well as interest from Apple. In the face of potential conflict between China and Taiwan, and with U.S. government support through the CHIPS Act program, U.S. manufacturing becomes strategically advantageous.

Intel CEO Lip-Bu Tan, who takes over in March 2025, has been aggressively restructuring and cutting costs. The new partnership could boost the stock price (up 3.5% since the news was published) and return the corporation to being a key player in the industry.

A new partnership could boost the company’s stock price (up 3.5% since the news was published).

Amdm may also benefit from the agreement: some production could be moved to the U.S., reducing dependence on TSMC, but not abandoning cooperation with the Taiwanese company.