Intel Engages in Early Talks to Onboard AMD as Foundry Client

 

Intel Initiates Discussions with AMD for Foundry Partnership

Intel is reportedly in early-stage talks to secure AMD as a customer for its foundry services, according to a Semafor report citing sources familiar with the matter. This development marks a significant turn in the semiconductor industry, where Intel and AMD have long been competitors.

The nature and specifics of the potential deal remain undisclosed, and both companies have declined to comment on the matter. However, the discussions suggest that AMD is evaluating Intel's manufacturing capabilities, which could lead to a strategic partnership. Previously, in April, Reuters reported that AMD was assessing Intel's manufacturing technology, indicating a possible collaboration between the two companies.

This move aligns with Intel's strategy to diversify its revenue streams and strengthen its position in the semiconductor industry. The company has been actively seeking external clients for its foundry business, which has faced challenges in competing with industry leaders like TSMC. Recent investments from entities such as the U.S. government, SoftBank, and Nvidia have bolstered Intel's efforts to revitalize its manufacturing capabilities.

For AMD, partnering with Intel could provide an alternative to its current reliance on TSMC for chip production. This shift could offer AMD greater flexibility and potentially mitigate risks associated with geopolitical tensions and supply chain disruptions.

While the discussions are still in their early stages, the potential collaboration between Intel and AMD underscores the dynamic nature of the semiconductor industry and the strategic moves companies are making to adapt to evolving market demands.