In context: Former CEO Pat Gelsinger openly called for Intel to produce chips for all major tech players, including competitors. Intel's current chief executive, Lip-Bu Tan, has said the company might eventually scale back from its most advanced production node if it fails to attract sufficient outsourcing demand – a risk that makes high-profile clients like AMD increasingly important. For AMD, Intel's foundries would not replace TSMC's capabilities, but they could provide an additional source of supply – and potentially a political safeguard at a time when chipmaking is as much about national security as technology.
Intel has opened early discussions with longtime rival AMD about producing some of AMD's chips in its factories, people familiar with the matter told Semafor. Such a deal would mark fresh validation for Intel's struggling foundry business.
The talks remain preliminary, and it is unclear whether AMD would shift a significant portion of its manufacturing to Intel or whether any agreement would include a direct investment from AMD. Sources cautioned that no final decision has been made and that discussions could still fail to produce a deal. Both companies declined to comment.
Reports of the talks come after a series of developments that have strengthened Intel's position following months of weak performance in cutting-edge chips.
In the past seven weeks, the company has secured high-profile backers: the US government took a 9.9% ownership stake, SoftBank acquired $2 billion in stock, and Nvidia invested $5 billion while also agreeing to co-develop chips with Intel. Apple has also reportedly been in discussions with Intel about potential support.
AMD currently relies primarily on TSMC to manufacture its processors and graphics chips. Intel does not yet have the capability to produce AMD's most advanced and profitable products, but it could manufacture less demanding chips.
Such an arrangement could also serve AMD's political interests. Earlier this year, Washington restricted AMD's ability to export chips to China – rules that were later partially loosened by the Trump administration. Maintaining close alignment with US manufacturing policy could be advantageous as the White House continues to tie industrial policy with national security.
Intel's factories still lag behind TSMC's in cutting-edge process technology, but the Trump administration has pressed major US companies to bring at least part of their manufacturing to domestic facilities. For companies like AMD, striking a manufacturing deal with Intel could ease political pressure while preserving TSMC relationships for higher-end production.
Intel has spent much of this year courting potential customers and investors as it seeks to establish its foundry unit as a credible rival to TSMC and Samsung.
Once the dominant player in personal computing chips, Intel has fallen behind in the AI race led by Nvidia. Securing AMD as a customer would represent a major breakthrough for Intel's manufacturing business, transforming a historic rivalry into a strategic partnership.
Even Nvidia's own users hate Nvidia. They just want the superior product, and there's no doubt AMD is still behind in GPUs. 
