Intel and AMD: A Potential Chip Manufacturing Partnership on the Horizon
Intel and Advanced Micro Devices (AMD) are reportedly in the early stages of discussions about a potential chip manufacturing partnership. This collaboration could significantly reshape the semiconductor industry. According to sources familiar with the matter, AMD is considering using Intel’s foundry services for some of its less advanced chips. If realized, this would be an unprecedented collaboration between these longtime rivals.
The talks, first reported by Semafor on October 1, 2025, sent Intel shares soaring 6-7%. Investors viewed this potential deal as a validation of Intel’s struggling foundry business. While Intel currently lacks the advanced capabilities to manufacture AMD’s cutting-edge processors, it could handle older semiconductor designs. This move would help AMD diversify its supply chain beyond Taiwan’s TSMC.
This potential partnership aligns with the Trump administration’s push for domestic chip manufacturing. The White House has been urging that 50% of chips for American companies be produced domestically. Intel has recently secured investments from several major players, signaling growing confidence in its manufacturing capabilities.
- Nvidia: $5 billion
- U.S. government: 9.9% stake
- SoftBank: $2 billion
Source: www.cnbc.com