Intel Corp. is in preliminary talks with Advanced Micro Devices Inc. to manufacture chips through its foundry operations, according to a report by Semafor.

A manufacturing agreement between the longtime rivals would mark a major victory for Intel’s foundry division, which has been actively pursuing large-scale customers. Industry analysts suggest that securing a prominent client would enable Intel Foundry to make substantial investments in advancing its manufacturing capabilities while demonstrating to other semiconductor firms that it can reliably handle their production needs.

The potential partnership would also indicate AMD’s willingness to entrust manufacturing to its primary competitor in the x86 processor market, where the two companies vie for dominance in PC and server chips.

Details regarding the scope of AMD’s potential manufacturing commitment with Intel remain unclear, according to Semafor. AMD currently produces its chips with Taiwan Semiconductor Manufacturing Company.

In recent weeks, Intel has attracted several major investors, including the U.S. government, which took an $8.9 billion stake; NVIDIA Corp., which invested $5 billion; and SoftBank Group, which invested $2 billion. Intel has reached out to Apple Inc. about a potential investment, according to a Bloomberg report.

The moves widely interpreted as endorsements of the company’s turnaround efforts under new CEO Lip-Bu Tan. NVIDIA, however, has not committed to utilizing Intel’s foundry services.

The news sent Intel shares up 7% in Wednesday trading, while AMD stock climbed more than 1%. Intel shares have surged nearly 77% year-to-date in 2025 as investor confidence in the chipmaker strengthens.

Intel declined to comment on the report.

“AMD does not comment on rumor or speculation,” a company spokesperson said.