Nvidia And Intel To Partner In The Future To Produce Gaming Chips

Intel appears to be setting its sights on a promising opportunity. According to Timothy Arcuri, an analyst with UBS, the company is nearing agreements with either Nvidia or Broadcom to utilize its 18A manufacturing node. Notably, Arcuri suggests that Nvidia is in a stronger position than Broadcom to finalize this deal, with plans to apply the 18A technology for gaming purposes.

Over the past five years, Intel has been striving for a revival, making bold moves but falling short of elevating its foundry business in the face of fierce competition from TSMC. The 18A node has been a key focus, and it seems that progress is finally being made. After discontinuing its work on the 20A node last year, Intel shifted its engineering resources to concentrate on 18A. This strategy aligns well with Intel’s existing contracts with major clients like Microsoft and the U.S. Department of Defense for 18A production.

Now, Nvidia could potentially join that roster of clients. Historically, Nvidia has primarily collaborated with TSMC for its GPUs, except for the RTX 30-series, which were produced by Samsung. Intel’s 18A node is classified as a “1.8nm-class” process, closely matching what the broader semiconductor industry refers to as a 2nm process. Both TSMC and Intel are among the few companies expected to achieve volume production of this node within the year, with Intel’s 18A being slightly smaller than TSMC’s N2, possibly leading to better power efficiency.

This week, Intel appointed Lip-Bu Tan as its new CEO, following the departure of Pat Gelsinger last year. Tan is expected to prioritize the company’s foundry services over chip design, part of which involves attracting fabless companies like Nvidia and Broadcom to leverage Intel’s manufacturing capabilities. Tan will make his first address to customers and investors at Intel Vision in Las Vegas on March 31.

Nvidia’s interest in partnering with Intel for next-generation GPUs may also stem from recent tariffs affecting imports from China. While Taiwan isn’t facing these tariffs, moving manufacturing closer to home could help Nvidia avoid rising costs. The company’s CEO has indicated that they are exploring options for U.S.-based manufacturing, including TSMC’s facility in Arizona.

If Nvidia does partner with Intel, it would mark a significant shift in the semiconductor landscape, though nothing is finalized yet. Intel has been promoting its 18A node for several years and claims it will start volume production in the latter half of this year, likely showcasing it first with the upcoming Panther Lake chips.