Nvidia and Intel, possible alliance for the production of chips

The chip crisis shuffles the balance and makes possible new alliances between the main players in the sector. One is the one that could bind Nvidia and Intel, CEO Jensen Huang himself suggests. Nvidia’s number one confirmed the existence of negotiations in progress to arrive at an agreement thanks to which Intel could make its foundries available to produce the chips of the partner. For the moment there is talk of a mutual interest in evaluating this possibility, but in any case Huang is clear in saying that, even if it were to be successful, the agreement would take time to be implemented, because the contribution of Intel will have to be integrated taking into account Nvidia’s supply chain.

Intel CEO Pat Gelsinger added that he is excited about Nvidia’s interest and confirmed that there is a lack of detailed timelines at the moment.

WHY NOW AND WHY MIGHT BE VALID FOR NVIDIA

The reciprocal approach must be framed within the project with which Intel has decided to deeply review its production structure, trying to return to shift its center of gravity to the West. One of the three points of the maxi plan announced by Intel last year foresees the production of chips based on the x86, Arm and Risc architecture also on behalf of other companies. Nvidia could be among them at a stage where Intel is making major investments to create new manufacturing facilities in the United States and Europe – think of the 80 billion dollars destined only for Europe within a decade.

At the moment the production of Nvidia chips is almost entirely entrusted to the Taiwanese TSMC, diversifying suppliers would not have particular contraindications, if anything it would bring benefits by laying the foundations to improve the stocks of products, such as video cards, which still arrive on the market with the dropper or higher prices than the price list.

It does not even stand against the fact that to achieve the goal Nvidia would form an alliance with a company that – in certain sectors – is its competitor. Huang explained this clearly before stating that trust with other industry partners is essential and that Nvidia has been collaborating for a long time with many companies, including Intel; then explicitly underlining: Intel has known our secrets for years.


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