Intel in Talks to Manufacture AMD Processors, Signaling Shift in semiconductor Landscape
january 10, 2025 - Intel is reportedly in preliminary negotiations with AMD to manufacture its processors, a move that could alleviate capacity constraints currently plaguing TSMC and bolster Intel’s foundry buisness. The potential agreement, first reported by Semafor, comes as the U.S. government seeks to reduce its reliance on Taiwan-based TSMC for semiconductor production.
While negotiations are early and no deal is certain, the news prompted a positive reaction from investors, though Intel’s stock remains below its early 2024 levels. This wouldn’t be the first collaboration between the two tech giants; Intel’s Kaby Lake-G processors,such as the i7-8809G,previously integrated Radeon RX Vega M graphics from AMD. however, that partnership was short-lived.
The development follows recent investments in Intel, including funding secured through the Trump management and an investment from NVIDIA, which plans to have Intel manufacture processors with integrated NVIDIA graphics. Despite Intel’s less advanced production technology compared to TSMC, the company possesses significant manufacturing capacity within the United States, offering a potential solution to the current supply chain challenges.
The U.S. government is actively encouraging a shift in semiconductor production to domestic facilities, but TSMC has been hesitant to relocate due to strategic considerations. Increased utilization of Intel’s factories could thus play a crucial role in diversifying the supply chain and easing pressure on TSMC.
