Biden Officials Reportedly Urged NVIDIA and AMD to Buy Intel Chips to Revive Intel’s Fortunes—A Push That Fell Short; Can President Trump Make It Happen?
America’s push to rebuild its semiconductor strength keeps circling back to one question: if TSMC is already building advanced chips on U.S. soil, why does Intel still matter? The answer is strategic independence. Intel is the only U.S. company with a realistic path to leading-edge manufacturing at scale, and its legacy, workforce, and R&D footprint are deeply rooted in the country. If the United States wants resilient, homegrown capacity for the most advanced nodes, reviving Intel’s foundry ambitions is not optional—it’s essential.
That’s why, in recent years, Washington has leaned in. According to Bloomberg, officials approached major chip designers—including Nvidia and AMD—about using Intel as a manufacturing partner, and even floated a tie-up with GlobalFoundries. Calls for a future administration to pressure Big Tech to “buy American” chips overlook an important fact: that outreach already happened. The stumbling block wasn’t a lack of interest; it was timing and capacity.
Here’s the reality facing potential customers. Companies like Nvidia and AMD are locked into long-term agreements with TSMC, which currently offers unmatched volume, performance, and ecosystem maturity at the most advanced nodes. Intel’s foundry arm is moving fast, but it still needs to prove sustained capacity, yield, and cost competitiveness for external clients. For hyperscalers and chip designers shipping millions of units, any risk to supply, packaging, or performance is unacceptable.
There are signs, however, that the ground is shifting. SoftBank has reportedly taken a meaningful stake in Intel, fueling speculation about deeper collaboration around ARM-based solutions. Intel recently demonstrated a reference non‑x86 system-on-chip built on third-party IP—widely read as a signal that it’s serious about becoming a neutral, full-service foundry. If Intel’s 18A process stays on track, it could become a compelling option for ARM designs, custom silicon from cloud providers, and high-performance accelerators that prioritize U.S.-based manufacturing.
What will it take to turn potential into purchase orders?
– Predictable, large-scale capacity: Customers need clear timelines, multi-year volume commitments, and confidence in yields across multiple fabs.
– Competitive process technology: Intel must hit its 18A roadmap and show consistent improvements in power, performance, and area—plus packaging options that rival the best in the world.
– Neutral, turnkey foundry services: A mature ecosystem spanning EDA support, IP libraries, advanced packaging, and design services that make onboarding fast and low risk.
– Clear cost and supply advantages: Incentives that narrow price gaps with offshore fabs, combined with the strategic value of onshore, trusted supply.
The U.S. government can accelerate this in tangible ways. Speed up CHIPS Act disbursements tied to milestone-based manufacturing capacity. Streamline permitting and utilities for fab expansion. Expand incentives for advanced packaging and domestic supply chains. Use federal and defense procurement to anchor demand for trusted, leading-edge manufacturing. And coordinate export and industrial policy so companies aren’t caught between competing priorities.
TSMC’s U.S. fabs are valuable, but they are not a substitute for a strong, native champion. A thriving Intel Foundry Services offering gives the United States a second, domestically controlled path to cutting-edge chips—reducing single-source risk and bolstering national and economic security. Big Tech may not be ready to shift today, but if Intel delivers on capacity and technology at 18A and beyond, the customer conversations will change.
Bottom line: reviving Intel’s chipmaking isn’t just about rescuing a storied company. It’s about securing America’s place at the front of the semiconductor race. With coordinated policy, focused execution, and credible capacity, Intel can become the U.S. anchor for advanced, at-scale manufacturing—complementing, not merely duplicating, what others bring to American soil.
