The LA Times is closely following a significant development in the semiconductor industry: AMD and Intel, longtime rivals, are exploring the possibility of working together in chip production. According to recent reports, AMD has entered early discussions with Intel Foundry Services (IFS) about potentially manufacturing some of its components using Intel’s facilities in the United States.
This move, if finalized, could reshape industry dynamics and highlights how global supply chain pressures and U.S. government policies are influencing decisions by top technology companies. The LA Times has emphasized that while no agreement has been signed yet, the talks alone represent a remarkable shift after decades of competition between the two chipmakers.
Why AMD is Considering Intel
The LA Times points out that AMD has long relied heavily on Taiwan Semiconductor Manufacturing Company (TSMC) for its advanced chips. TSMC is still the world leader in high-performance chip production, but supply constraints, geopolitical risks in East Asia, and increasing U.S. government pressure to boost domestic semiconductor capacity have added urgency for AMD to diversify its manufacturing base.
While Intel’s most advanced nodes cannot currently match TSMC’s N3 or N4P technologies in performance and efficiency, AMD’s chiplet strategy gives it flexibility. Supporting dies such as I/O chiplets or less power-intensive accelerators can be built on slightly older nodes. According to industry experts cited by the LA Times, this makes Intel’s 20A or 7nm-class nodes potentially suitable for part of AMD’s product lineup.
Intel’s Urgent Need for Validation
From Intel’s perspective, this partnership could provide much-needed validation for its foundry business. The LA Times explains that Intel has committed billions to developing its IFS program, building large-scale fabs in Arizona and Ohio. However, most of its foundry revenue so far has come from internal use and legacy nodes, not from external customers.
By securing AMD as a customer, even for limited chip volumes, Intel would send a strong message to the industry. If a direct competitor like AMD is willing to entrust parts of its supply chain to Intel, it would lower reputational barriers and potentially attract other high-profile customers.
The LA Times also notes that Intel’s government support, including up to $7.9 billion in subsidies, depends on proving that its foundry model can attract large-scale external demand. Winning AMD would strengthen its case for long-term investment and policy backing.
A Strategic Balancing Act
Industry watchers caution that the talks remain exploratory. The LA Times highlights that AMD may be signaling its intent to diversify manufacturing without reducing its dependence on TSMC in the near term. For AMD, appearing to explore alternatives strengthens its leverage in negotiations with suppliers. For Intel, publicizing these talks helps position its foundry services as increasingly viable, even if AMD ultimately chooses to keep most of its production in Taiwan.
There is also risk for Intel. If it promises too much external capacity before its advanced nodes are ready, it could repeat past mistakes that hurt its foundry business. Still, the fact that serious conversations are happening is a sign that Intel’s turnaround efforts may be gaining traction.
Implications for the Semiconductor Industry
The LA Times underscores that this potential collaboration reflects a broader realignment in the global semiconductor ecosystem. Supply chain resilience, geopolitical concerns, and national security priorities are driving U.S. companies to bring more manufacturing back home. Partnerships that once seemed impossible, such as AMD working with Intel, are now on the table as part of that strategic shift.
For consumers, any agreement could eventually impact product pricing, availability, and innovation cycles. If Intel’s foundry services become more competitive, it could reduce bottlenecks in global supply and provide companies like AMD with more options for scaling production.
The LA Times continues to follow developments as AMD and Intel weigh the technical and strategic feasibility of a foundry partnership. While the deal is not yet sealed, the discussions alone signal how much the industry has changed. Once fierce competitors, AMD and Intel now find common ground in a rapidly evolving technological and geopolitical landscape.
Stay ahead on the latest in technology, business, and startup ecosystems with Startup News.
