TMTPOST --   Intel Corporation   may win   a new   customer for its foundry   business   as the Trump administration   is   ramping up efforts   to boost manufacturing   chips in the United States.

Credit：Intel

Intel is   in talks   with   Advanced Micro Devices, Inc.   ( AMD )   about   potential   making chips for the the fabless   chip designer   at Intel ’ s facilities,   Semafor reported   on Wednesday, citing sources famrliar with the   matter. The two companies may not   reach   collaboration   since   the sources   noted   their   discussions are at   early stage.   

It ’ s unclear   how much   of AMD ’ s chip production   would move to Intel   if a deal is stuck,   according   to the   sources.There is   also no   clarity whether the   deal   would involve a direct investment from AMD, similar to the agreements that Intel inked with other companies.  

Intel declined   to comment on   the report.   An   AMD representative responded   that the company "does   not comment on   rumor or speculation."   Intel shares   as of Wednesday close   popped 7.1%   on the news, and AMD stock rose 1.3%.

If AMD agrees on chip   manufacturing   in Intel ’ s   foundry,   it would be   a big   win for Intel, which is   in a search   for big foundry customers.   Intel CEO   Lip-Bu   Tan   has suggested   the company could   stop   offering its 18A node if there isn ’ t   enough demand for it. Such a partnership   with AMD could validate for Intel former   CEO   Pat Gelsinger ’ s vision   about producing chips for all   the world ’ s tech tigans.

Analysts   believe that a   big   customer would   make Intel feel confident   about investment   in   developing its manufacturing   technology for its   foundry   business,   and would   send   a signal   to semiconductor peers   that Intel can   handle   their business.  

A   deal   with   Intel should show   AMD ’ s confidence in manufacturing with its biggest competitor   as   it competes   with Intel   in x86-based chips for personal   computers ( PCs )   and servers. For AMD, the   manufacturing   partnership with   Intel would   have   a   greater   symbolic   significance than the shift   of   some chip-making, given   the Trump administration   is easing   export   control   on chips to China   and working to encourage   chip-manufacturing in the U.S.

AMD, like its rival Nvidia Corp., currently mainly relies on Taiwan Semiconductor Manufacturing Co. ( TSMC ) to meet its manufacturing needs. Intel ’ s   factories   are considered inferior to TSMCs.   But leading   U.S. companies, following   the Trump administration ’ s promotion for made-in-U.S., have diverted at least some   of their production, most   for less-advanced chips, towards Intel ’ s domestic   foundries.

The   latest   reported consideration   of   new   chip   policies are   the latest   sign that the White House is   seeking to drive   companies   to move to   manufacturing   in the   U.S.  

The Trump   administration is mulling new tariffs on electronic devices   based on the number   of chips in   each device, Reuters on Friday   cited sources.   The   U.S. Commerce Department,   under the reported plan, would impose a tariff on the imported   product   that is equal   to a percentage of   the estimated   value of the chip content of the item.

The Wall   Street Journal   on Friday echoed the report, saying the   Trump administration   is considering a plan   asking chip   companies   to   produce   the same   number of semiconductors in   the U.S.   as their   customers import   from   overseas   products. It was said that   companies   can ’ t maintain such 1:1 ratio   over   time would face a new tariff.   U.S.   Commerce Secretary Howard Lutnick has reportedly discussed the plan with industry executives and told them it might   be needed for national security.

The   Commerce Department   didn ’ t respond   to requests for comment. Asked about the details   of the   plan,   White House   spokesperson   Kush   Desai   on Friday said   U.S. can   not rely on foreign   semiconductor imports   that are "essential for   our   national and   economic   security."   "The Trump administration is implementing a nuanced, multi-faceted approach to reshoring critical manufacturing back to the United States with tariffs, tax cuts, deregulation, and energy abundance,"   Desai   said.