Intel in negotiations to make AMD’s chips, in line with insiders
Intel is attempting to claw its method again into relevance with some massive strikes currently, corresponding to its lately introduced alliance with Nvidia. However there’s extra occurring behind the scenes, together with some negotiations with AMD, in line with a report by Semafor.
The intention of this Intel-AMD settlement can be to supply AMD chips in Intel’s personal factories, often known as foundries. (A foundry manufactures semiconductors in line with buyer designs.) Intel would subsequently notice AMD’s designs, though each compete within the processor market.
The deal just isn’t but finalized and an settlement may take months, as additional hurdles (corresponding to regulatory critiques) are nonetheless pending.
Why Intel needs AMD as a buyer
Intel has been attempting to meet up with the world’s main chip producer TSMC for years. TSMC at present produces most AMD chips with superior 5nm or 3nm processes, whereas Intel’s present 18A course of (similar to 2nm) received’t be prepared for collection manufacturing till 2025. In accordance with Semafor, Intel may initially produce much less advanced AMD chips because of its lack of high-end expertise.
However, AMD can be a prestigious buyer that might bolster Intel’s ailing Foundry division. Nvidia has already invested $5 billion in Intel, and Apple has additionally been approached, which reveals the widespread curiosity in Intel’s capacities.
A possible battle between China and Taiwan—which is the place TSMC is headquartered—makes US-based manufacturing enticing. On high of that, the US authorities is selling home chip manufacturing via the CHIPS Act to additional cut back dependence on Asia.
Intel CEO Lip-Bu Tan, who has been in workplace since March 2025, is pushing forward with restructuring and cost-cutting measures as Intel is not among the many high 10 chip producers, particularly in AI {hardware}. An AMD deal may additionally enhance Intel’s share value, which rose by 3.5 p.c following the information, and enhance the US chip business.
What does this imply for the business?
This Intel-AMD partnership may additionally carry benefits for AMD, like decreased dependence on TSMC with out giving up their cooperation totally. For Intel, it’s a step in direction of profitability for its Foundry division, which is at present working at a loss.
An Intel-AMD deal can be an historic growth, and two main rivals working collectively may considerably strengthen the US market. It stays to be seen whether or not the deal will materialize, however one factor is obvious: these talks are a sign of Intel’s ambitions.
This text initially appeared on our sister publication PC-WELT and was translated and localized from German.
