Rumors have emerged suggesting that AMD may soon become a customer of Intel’s foundry services, as reported by Semafor. The specifics of how much of AMD’s production might shift to Intel remain unclear. AMD currently collaborates with TSMC and GlobalFoundries, having divested its own fabrication capabilities in 2008 when it sold off those facilities.
While there are claims that Intel lacks the technology to produce AMD’s most advanced chips, this assertion is misleading. Intel has capabilities for both 7nm and 5nm chips, which are utilized by AMD in its CPUs and GPUs.
As this speculation continues, Intel and AMD’s historical relationship also comes to light. In 2004, Intel licensed AMD’s x86-64 extensions, which are still integral to Intel’s processors today. This existing interdependence makes a partnership conceivable, especially considering AMD’s push to manufacture domestically for government contracts and supercomputing projects.
AMD has recently faced challenges in keeping pace with Nvidia in the AI sector, though it has secured prominent positions in federal supercomputing with systems like El Capitan and Frontier. By manufacturing its chips in the United States, AMD could align itself better with governmental objectives to increase domestic semiconductor production.
The push for local production has been notably strong under the Trump administration, which aims for half of the chips sold in the U.S. to be domestically made and has implemented tariffs on imports. Additionally, during the year, AMD encountered export limitations on GPUs designated for China, following U.S. restrictions on its AI technologies.
Experts suggest that partnering with Intel may be a strategic move for AMD to gain local manufacturing capacity without directly competing for limited resources at TSMC against larger players like Nvidia and Apple. With significant investments flowing into Intel from both the U.S. government and Nvidia, collaborating with Intel could diversify AMD’s supply chain and provide cost-effective locally sourced components.
This potential tie-up would mark a continuation of positive developments for Intel, enhancing its legitimacy in semiconductor manufacturing and possibly drawing in more U.S.-based customers.
In recent weeks, Intel has also announced a partnership with Nvidia to collaboratively produce chips for PCs and data centers, alongside Nvidia acquiring a $5 billion stake in Intel. Earlier, the U.S. government had invested approximately $11.1 billion in Intel as well.
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