Intel CEO discussed potential collaboration with AMD, focusing on regaining CPU leadership

Intel and AMD Discuss Cooperation

Intel CEO Lip-Bu Tan has reportedly engaged in discussions with AMD CEO Lisa Su regarding potential areas of collaboration. This marks a notable development given the historical rivalry between the two semiconductor giants, suggesting a willingness to partner when interests align. The details of these discussions have not been publicly disclosed by Tan.

Strategic Shift for Intel's CPU Business

Tan outlined his strategy to revitalize Intel's CPU business, emphasizing a departure from the company's traditional approach. He stated a determination to reclaim leadership in the CPU market and highlighted a new focus on developing silicon tailored to specific customer workloads. This includes modifying products for customer needs, a change from Intel's previous stance of not customizing for clients.

Expanding Beyond Traditional CPUs

Intel's growth strategy extends beyond conventional CPUs into new areas. Tan identified application-specific integrated circuits (ASICs), co-packaged optics (CPO), physical AI, and advanced packaging as key growth businesses. He anticipates that two or three of these areas could each contribute approximately 10% of Intel's revenue in the future.

Foundry Operations and Process Development

Intel's foundry business is a central component of Tan's plans. The company's 18A manufacturing process has reached volume production. Development of the next-generation 14A process is also progressing, with version 0.5 of its process design kit (PDK) already released. Version 0.9 is expected next, followed by version 1.0 for volume production in early 2027, with multiple customers already engaged.