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Nvidia may start producing graphics units at Intel

Nvidia is apparently quite open to having its graphics chips produced by Intel in the future. The background, of course, is the plan of the leading US chipmaker to become one of the major contract manufacturers for various chips and SoCs in the coming years.

Nvidia CEO Jensen Huang revealed during a recent appearance at the company’s online event that it is considering partnering with Intel to contract its graphics chips and other processors. However, Huang also sees several hurdles that Intel must overcome before the US company can actually meet CEO Pat Gelsinger’s goals.

Nvidia wants to reduce dependence on TSMC and Samsung

Huang explained that Nvidia will naturally want to rely on a greater number of manufacturing partners in the future to reduce its reliance on individual suppliers. Nvidia currently has the majority of its chips manufactured by the world’s largest contract manufacturer TSMC in Taiwan and Samsung’s semiconductor division in South Korea.

We are open to working with Intel as a manufacturing partner, Huang said. The talks with the so-called foundries are long, so it is not just about the wish for possible cooperation. The stock market reacted according to the US Economic Service Bloomberg positively on Huang’s reasoning and caused Intel’s stock price to rise.

Intel learns to adapt to customer needs, says Nvidia

However, in order to compete with TSMC or Samsung, according to Huang, more is needed than just building new production facilities. According to the Nvidia boss, Intel must fundamentally change its corporate culture and the way it works. If you want to become a chip manufacturer of the caliber of the Taiwanese company TSMC, you have to do a lot, because TSMC cooperates with more than 300 important customers from all over the world. Among other things, Intel has to get used to responding to the needs of its production customers, which is not part of the experience of the US group, as Intel has so far produced almost exclusively its own designs.

However, Intel’s refocusing on manufacturing chip designs from other providers is a necessary step for the company, the Nvidia boss said. Intel plans to invest tens of billions of dollars in the future to become one of the largest contract manufacturers. Several new chip factories are being built on the outskirts of Magdeburg in Saxony-Anhalt. Germany will thus play a major role in Intel’s future.