Intel reportedly in talks with AMD to make them an Intel Foundry customer
Intel are reportedly in talks with AMD to make them a foundry customer
According to an exclusive report from Semafor, Intel are now in “early talks” with AMD to make them an Intel Foundry customer. This news comes after the US Government’s direct investment in Intel and Nvidia’s investment and partnership with the company.
Currently, AMD produces its chips with TSMC, a Taiwanese semiconductor manufacturer. With Intel, AMD could produce high-end computer chips in the US. This could be a great benefit for AMD, as the US Government is constantly threatening tariffs on foreign-made semiconductors.
If AMD were to produce products with Intel, it would validate Intel’s foundry ambitions. Furthermore, it would prove that Intel has a strong foundry product. After all, why would AMD produce chips with Intel, a direct competitor, if their technology was inferior?
Given AMD’s use of chiplet-based processors, it is possible that some future AMD products could use a combination of TSMC and Intel silicon. However, it remains to be seen if both companies will be able to reach a deal.
For AMD, partnering with Intel could provide it with a tactical advantage. It would give AMD an alternative foundry for manufacturing, placing them in a stronger negotiating position with TSMC. Furthermore, it could help AMD politically. After all, the US Government is now a major investor in Intel. A partnership with Intel could help AMD maintain a good relationship with the White House. Given the importance of Chinese exports, this favour is highly valuable.
For Intel, the benefits of a deal with AMD are obvious. Getting a large foundry customer is a huge win. This would allow Intel to profit from AMD’s CPUs. Yes, that means that Intel could profit from all x86 CPU sales, not just their own. Additionally, such a move would make Intel’s Foundry more enticing to other potential customers.
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