NVIDIA’s Chief Financial Officer, Colette Kress, recently hinted at a potential partnership with Intel for a manufacturingg parntership during an interview the UBS Global Technology Conference. This move could mark a significant shift in NVIDIA’s chip fabrication strategy, which currently relies heavily on TSMC and to a lesser extent Samsung. TSMC is currently the primary manufacturer of NVIDIA’s Ada gaming GPUs with the RTX 40 series and their gold mine HPC chips driving their AI advancements in data centers. Samsung on the other hand also played a key role in producing the chips for NVIDIA’s last-gen RTX 30 series GPUs.
Intel as a third foundry partner would be a strategic expansion for NVIDIA and would give them options on production strategy. Kress expressed interest in diversifying their foundry options, noting the potential benefits of having a partner like Intel, especially given the geopolitical tensions between the United States and China. The uncertainty surrounding the future accessibility of TSMC’s services, primarily based in Taiwan, adds to the strategic importance of this potential partnership.
Aligning with the U.S. administration’s push to bolster domestic chip-making capabilities, a partnership with Intel would not only provide NVIDIA with a more diversified and secure supply chain but also strengthen the domestic semiconductor industry. This move could be particularly significant in the context of the ongoing efforts to reduce reliance on overseas chip manufacturing amidst global supply chain challenges.