Intel’s efforts to stage a comeback in the global semiconductor market may soon involve a surprising partner: AMD. After recently announcing a high-profile alliance with Nvidia, Intel is now in talks with its fiercest competitor about producing AMD processors in Intel’s own foundries, according to a report by Semafor. The move would represent a significant shift in the industry, as two rivals consider working together amid intensifying global demand for advanced chips.
While the potential agreement has not yet been finalized—and could take months due to regulatory reviews—the deal would see Intel manufacture AMD-designed chips, despite the companies’ rivalry in the processor space. Intel has been striving to catch up with TSMC, which remains the dominant force in advanced semiconductor production and is responsible for AMD’s most cutting-edge products. Intel’s 18A process, expected to rival TSMC’s 2nm-class technology, won’t be ready until 2025, so initial collaboration could focus on simpler AMD chip designs.
For Intel, winning AMD as a customer would be a milestone for its foundry division, which has faced setbacks and financial struggles. The company has already secured attention from industry giants like Nvidia, which invested $5 billion, and has reportedly approached Apple as well. Beyond customer wins, Intel’s push is supported by U.S. government policies, including the CHIPS Act, which incentivizes domestic semiconductor production to reduce dependence on Asia. With growing concerns about Taiwan’s stability, U.S.-based chipmaking capacity is seen as strategically vital.
Intel’s new CEO, Lip-Bu Tan, has been leading an aggressive restructuring campaign since March 2025, aiming to restore profitability and competitiveness. The talks with AMD have already sparked optimism, driving Intel’s stock price up by 3.5 percent. For AMD, diversifying production could reduce risks tied to overreliance on TSMC while still maintaining its partnership with the Taiwanese giant. If the partnership goes forward, it would not only reshape the relationship between two historic competitors but also bolster the U.S. semiconductor sector in its bid to rival Asia’s dominance.