- Intel in talks to produce AMD chips despite major technology hurdles
- AMD may shift limited production to Intel while protecting flagship processors
- Washington favors US chipmaking as Intel woos investors and potential customers
Back in February 2025, well before everyone suddenly got interested in throwing money at Intel, I wrote that the iconic but beleaguered chip maker could be about to merge with GlobalFoundries – a rumor made all the more salacious as GloFlo is AMD’s former foundry.
The headline I gave it started with “Hell freezes, pigs fly” because frankly it seemed like an unlikely situation.
Fast forward to now, and Semafor is reporting that Intel is in early talks to add AMD as a foundry customer, which isn’t as unlikely as it would have been a few months ago, but still…
Not flagship chips though
Intel has been on something of a charm offensive lately, seeking customers and investors to back its push to establish itself as a contract chipmaker.
In recent weeks it has lined up financial support from the White House, Nvidia, and SoftBank, been in talks with Apple and TSMC, and no doubt had a few behind closed door conversations with other members of the so-called Magnificent 7.
For AMD, any foundry deal with Intel would be more than a little complicated. Its most advanced processors are built on TSMC’s leading-edge nodes, which Intel can’t yet match.
This makes it unlikely AMD would hand over production of its flagship products to its long-time rival.
At best, the resurgent chip maker might win some lower-margin or less complex chips, which would still help diversify AMD’s supply chain and earn goodwill in Washington.
As a commenter on Tom’s Hardware suggested, “I am wondering if AMD will make the embedded (low power APUs) and networking (Pensando) stuff in Intel’s fabs. That would make the most sense to me, due to supply distances. Makes little to no sense to do chips in the USA, send them to Taiwan/Malaysia and then back to the USA.”
It’s not yet clear how far discussions have gone, or whether they would involve AMD taking a direct stake in Intel’s foundry arm, as other partners have done.
Semafor says both companies have so far declined to comment on the matter.
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The post Surprise! Intel is in talks with AMD over possible chipmaking deal first appeared on TechToday.
This post originally appeared on TechToday.