AMD is reportedly in talks with Intel about the possibility of commissioning its fab business. Given American investment in domestic chips, this could be the type of win Intel has been looking for.
This is all as reported by Semafar, though no word is given on how far these talks have gotten or where the information comes from. Intel currently has the financial backing of Nvidia, Softbank Group, and even the US government.
This renewed investment has the potential to position Intel as a big player in the future of American semiconductor manufacturing. It's safe to assume Intel will be having these kinds of talks with many major manufacturers right now, though how far it gets is another story.
Semafar clarifies these are just 'early-stage talks.' These talks are in relation to Intel's Foundry business, which would supply semiconductors. AMD is a big customer of TSMC, the world's biggest semiconductor manufacturer.
TSMC has a clear lead over the competition, with the company churning out chips for the likes of Nvidia, Apple, Qualcomm and more. Samsung also has a series of fabs based in South Korea and the US.
Intel currently has a lot of chips (get it?) riding on 18A, the process node that we're hoping will bear fruit in its upcoming processors. Previous Intel CEO Pat Gelsinger said in 2024 that he "bet the whole company on 18A". Despite troubling reports about wafer yields in August, Intel promised it would have "leadership across the board" last month, thanks in part to 18A.
The success of the process node is also in the interest of the US Government, which not only has a stake in the business directly but has implemented tariffs in an attempt to push domestic manufacturing.
TSMC has newly built fabs in America for American production, with plans for more to come in the future. However, TSMC's best nodes are still being developed in Taiwan and will likely stay that way for some time. Though the US would get a portion of taxes from TSMC's American fabs, it doesn't have a stake in the business.
The US Government's investment in Intel is a further commitment to domestic manufacturing, so it will want Intel to succeed in contract negotiations going forward.
More competition for TSMC is a good thing, too, as focusing much of the world's semiconductor needs on a single company could give it a monopoly over the tech. Regardless of how these talks go, the next year will be a big one for Intel.
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