Intel reportedly in early talks to add AMD as foundry customer

Core Viewpoint - Intel and AMD are in early discussions for AMD to utilize Intel's foundry services, which could signify a strategic shift for Intel in rebuilding its reputation in chip manufacturing [2]. Group 1: Intel's Position - Intel is attempting to regain credibility in chip manufacturing through partnerships and endorsements, including potential investments from major players like Nvidia, Apple, and TSMC [2][3]. - Despite these efforts, Intel's foundries currently lack the advanced technology that TSMC offers, which may limit the scope of AMD's production shift to less advanced manufacturing [3]. Group 2: AMD's Potential Role - The potential partnership could lead to AMD becoming either a customer or an investor in Intel's foundry services, which has positively impacted AMD's stock, resulting in a 6% increase [4]. - This collaboration is seen as a step towards establishing a viable domestic alternative for chip manufacturing amid the U.S. political focus on chip independence [5]. Group 3: Market Implications - The discussions between Intel and AMD reflect broader trends in the semiconductor industry, where companies are seeking to adapt to changing market dynamics and political pressures regarding domestic production [5].