Intel Seeks AMD As Foundry Customer, Signifying Team Blue’s Confidence in Upcoming 18A & 14A Process Nodes

Intel is reportedly shifting its focus towards securing a partnership with its longtime competitor, AMD, potentially opening the door for AMD to become a foundry customer. This development could mark a significant turning point for Intel’s ambitions in the semiconductor industry.

Intel Engaging in Early-Stage Negotiations with AMD for a Foundry Collaboration

In recent months, Intel has experienced a resurgence in momentum, largely driven by strategic interests from key players such as the Trump administration, NVIDIA, and SoftBank. With American companies increasingly looking to collaborate with Intel, rumors have surfaced about Apple and AMD potentially joining this movement. According to a new report by Semafor, Intel and AMD are in the ‘early stages’ of discussions about a possible foundry agreement, which may involve advanced process nodes like 18A and 14A. This partnership could greatly benefit Intel Foundry Services (IFS), especially as it seeks to attract more external clients.

The implications of a collaboration between AMD and Intel extend beyond mere business interests; there are significant political dimensions at play as well. President Trump has taken an active role in guiding Intel since the administration acquired a stake in the company, encouraging collaborations between American firms to strengthen the domestic semiconductor industry. Companies such as NVIDIA, Apple, and AMD recognize that aligning with Intel could enhance their negotiating power with the U. S.government, especially regarding future business considerations.

Silicon Wafer — A silicon wafer.(Image Source: Intel)

Historically, AMD and Intel have collaborated successfully, as seen in 2018 with the Kaby Lake-G processors that integrated AMD’s Radeon RX Vega graphics chiplets into Intel’s architecture. This precedent suggests that the two companies may have the potential to explore further collaboration. Speculatively, this could mean AMD might consider transitioning some CPU production to Intel, possibly involving the EPYC Venice CPUs on the 18A node, given their prior reliance on TSMC’s N2 process.

The discussions surrounding Intel’s potential investment and collaboration with AMD hinge on the successful implementation of the 18A process node. If Intel can deliver favorable results in yield rates and performance-per-area (PPA), the hesitation among major technology companies to shift away from TSMC could diminish significantly. Additionally, with TSMC facing political challenges, Intel may find itself in an advantageous position to attract attention and business within the foundry sector.

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