AMD relies on TSMC for most of its manufacturing, but the US government has made clear that bolstering Intel is a top priority.

…AMD designs chips that are currently produced mostly by Taiwan’s TSMC, and Intel currently lacks the technology to produce AMD’s most advanced, profitable chips.

It’s unclear how much of their manufacturing would shift to Intel if the two companies reach a deal, or whether it would come with a direct investment by AMD, similar to the deals cut by other companies. It is possible that no agreement will be reached, the people said…