Intel in Talks to Manufacture Some AMD Chips

Intel is in early, preliminary talks with AMD about making AMD a customer of its foundry business to manufacture some of AMD’s chips, though scope, any investment, and whether talks will succeed remain unclear. Intel currently lacks the capability to produce AMD’s most advanced processors (which are mainly made by TSMC), so any work would likely cover less demanding products, would face regulatory and capacity hurdles, and could take months to materialize. The discussions follow fresh strategic backing for Intel’s foundry that includes a reported U.S. government 9.9% stake, SoftBank’s $2 billion investment, and Nvidia’s roughly $5 billion investment and co‑development deal; Intel has also reportedly approached Apple. CEO Lip‑Bu Tan has signaled he may scale back advanced nodes such as 18A if external demand is insufficient, making marquee clients like AMD critical to the foundry’s prospects. Markets reacted positively and pushed Intel shares higher, but both companies declined to comment and no agreement has been announced.