Nvidia might just co-operate with Intel to produce its own processors

Nvidia Corp (NVDA.O) is considering utilising Intel Corp (INTC.O) to produce its processors, according to Chief Executive Officer Jensen Huang during a conference call with reporters on Wednesday. Intel unveiled…

By Nivedita Bangari

March 25, 2022

2 min read

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Nvidia Corp (NVDA.O) is considering utilising Intel Corp (INTC.O) to produce its processors, according to Chief Executive Officer Jensen Huang during a conference call with reporters on Wednesday.

Intel unveiled multiple multibillion-dollar initiatives for new manufacturing sites in the United States and Europe early last year, after deciding to expand its business into building chips that others design as well. This is known as the foundry business.

Following Huang’s remarks, Intel’s stock jumped as high as 2.5 percent. Chip design businesses have made public commitments to employ Intel’s chip facilities, something investors have been watching for. Qualcomm Inc. (QCOM.O) and Amazon.com Inc. (AMZN.O) were announced as customers for Intel’s foundry division last year.

After a Senate hearing on Wednesday, Intel CEO Pat Gelsinger told Reuters that his business is “thrilled by their interest in utilising our foundry capabilities.” He stated that he had “no specific timeline.” He stated that talks with Nvidia were still ongoing.
“I’m sure he’s interested in having more options … and it doesn’t cost him anything to say that,” said Bernstein analyst Stacy Rasgon about Huang’s comments. “Butit doesn’t tell you anything at all about what it’s actually going to look like when they get there.”

Currently, Taiwan Semiconductor Manufacturing Co. (2330.TW) manufactures the majority of Nvidia chips, and Huang stated that “being a foundry of the calibre of a TSMC is not for the faint of heart,” adding that “being a foundry of the calibre of a TSMC is not for the faint of heart,” adding that “being a foundry of the calibre of a TSMC requires a change in culture to provide not just processes but service.”

When asked if he would be concerned about working with a competitor like Intel, Huang stated that trusting and collaborating with industry partners is critical, and that Nvidia has historically partnered with a variety of firms, including Intel.