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Home Hardware Semiconductor Chips

Intel, AMD Reportedly In Early Talks Over Potential Chip Manufacturing Deal

If successful, the deal could see AMD shift part of its manufacturing to Intel's foundries.

by Heirul Kamel
October 3, 2025
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Intel is reportedly in preliminary discussions with AMD about producing some of the latter’s chips through its foundry business, according to a report from Semafor citing people familiar with the matter. While the talks are still in the early stages, such an arrangement would mark a significant shift in the semiconductor industry and a potential validation of Intel’s push to establish itself as a contract manufacturer.

At present, AMD primarily relies on TSMC to manufacture its processors and graphics products, while Intel also works with the Taiwan-based chipmaker for certain lines. Sources note that the company does not yet have the capability to fabricate AMD’s most advanced designs, but could handle less demanding products. It remains unclear how much of the Intel rival’s portfolio could be shifted, or whether the discussions would involve a direct investment. Both firms have declined to comment.

amd file photo 1

Earlier this year, the US government imposed restrictions on AMD’s ability to export chips to China, later loosening some of the rules. Closer alignment with US-based manufacturing could help it navigate regulatory pressures while maintaining strategic ties with TSMC for high-performance products. 

The talks also come amid heightened activity around Intel itself. In recent weeks, the US government acquired a 9.9% ownership stake, Softbank purchased $2 billion worth of shares, and NVIDIA announced a collaboration on new x86 chips while also investing $5 billion. There have also been reports of potential cooperation with Apple.

Intel-ARM-collaboration
(Image source: Intel.)

If successful, the arrangement would underline the former CEO Pat Gelsinger’s ambition of turning Intel into a foundry partner for the world’s major tech firms, including its competitors. However, sources caution that the discussions remain preliminary and may not result in a formal deal.

(Source: Semafor)

Filed Under AMDintel
Updated 11:06 am, Fri, 3 October 25
https://lowy.at/lj1b8
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