Intel in early talks to add AMD as foundry customer
5 hours ago
- #manufacturing
- #investment
- #semiconductors
- Intel is in early-stage talks to add AMD as a customer at its factories.
- Intel has gained support from the White House, Nvidia, SoftBank, and is in talks with Apple.
- AMD currently produces most of its chips with TSMC, and Intel lacks the tech for AMD's advanced chips.
- Unclear how much AMD manufacturing would shift to Intel or if AMD would invest directly.
- Intel shares rose ~3.5% on the news and are up ~77% YTD.
- AMD's China business was hit by export restrictions, recently loosened by Trump.
- Intel's factories are considered inferior to TSMC's, but US companies are shifting some production to Intel.
- Intel has been speaking with prospective customers and investors about similar deals.
- Intel dominates in laptop chips but lags in AI chips, where Nvidia leads.