NVIDIA, one of the biggest names in artificial intelligence chips and graphics processing units (GPUs), has said it is open to working with longtime rival Intel to manufacture its future chips. The decision will largely come down to how Intel’s next-generation manufacturing technologies perform in practice. If it happens, the shift could reshape the semiconductor landscape, where Taiwan’s TSMC still dominates most of NVIDIA’s high-end production.
Key Takeaways
- NVIDIA is evaluating Intel’s manufacturing capabilities for future products.
- The partnership depends on Intel proving it can deliver competitive chip technology.
- Intel is pushing to become a major contract manufacturer for other chip designers, including direct rivals.
- A deal could help NVIDIA reduce its reliance on TSMC and strengthen its supply chain.
For years, NVIDIA has leaned heavily on TSMC (Taiwan Semiconductor Manufacturing Company) to build the advanced GPUs that drive gaming systems, AI research, and large-scale data centers. Intel, on the other hand, has long been known for making its own CPUs but has struggled in recent years to hold its manufacturing edge. Under CEO Pat Gelsinger, the company has launched Intel Foundry Services (IFS), a division aimed at building chips for outside clients, even competitors.
NVIDIA CEO Jensen Huang has openly expressed interest in the idea. He confirmed that NVIDIA has already received test chips using Intel’s upcoming technology and that the early signs are encouraging. Still, Huang stressed that any partnership would ultimately depend on Intel delivering consistent performance. For NVIDIA, what matters most is securing access to the most advanced and dependable manufacturing process available, something it needs to keep its leadership in the AI hardware space.
For Intel, a deal with NVIDIA would be a huge win. Landing a client of that scale would serve as proof that its foundry strategy is working and would bring serious credibility in a market where TSMC and Samsung have set the standard. It could also shift industry dynamics, opening the door for Intel to compete more aggressively in contract manufacturing.
From NVIDIA’s side, the strategic benefit is hard to miss. Right now, the global concentration of chip manufacturing in Taiwan raises concerns, especially with geopolitical uncertainties hanging over the region. Expanding its production to Intel’s facilities in the United States or Europe would give NVIDIA more security and resilience in its supply chain. That kind of diversification could also mean steadier supply and pricing for advanced computing hardware across markets, including India and other growing regions.
Of course, the two companies are still fierce rivals in many areas, particularly in data centers and PC components. Yet manufacturing is one of the few places where cooperation might actually make sense. Whether that cooperation materializes depends on the technical readiness and cost-effectiveness of Intel’s upcoming processes, like its 18A node, which is expected to enter production in the near future.
For now, the industry is watching closely. A collaboration between NVIDIA and Intel would not only mark an unlikely partnership but also set the stage for a major shift in how the global semiconductor supply chain is structured.
Frequently Asked Questions (FAQs)
Q. Are NVIDIA and Intel partners right now?
A. No, they are primarily competitors. However, NVIDIA is considering using Intel’s factories to manufacture its future chips, which would make them a customer of Intel’s foundry business.
Q. Why would NVIDIA use Intel instead of its current supplier, TSMC?
A. Using Intel would help NVIDIA diversify its manufacturing sources. This reduces the risk of production delays and protects its supply chain from potential disruptions, especially since most advanced chipmaking is currently concentrated in Taiwan.
Q. What is a chip foundry?
A. A chip foundry, or fab, is a factory where semiconductor chips are manufactured. Companies like NVIDIA and AMD design their own chips but pay foundries like TSMC, Samsung, and potentially now Intel, to produce them.
Q. What is so special about Intel’s 18A process?
A. The 18A process is one of Intel’s most advanced manufacturing technologies. The ‘A’ stands for angstrom, a unit of measurement. It represents Intel’s effort to reclaim manufacturing leadership by producing smaller, faster, and more efficient transistors than its competitors.
