According to recent comments from Nvidia CEO Jensen Huang, the business is exploring using Intel to produce its processors. Huang told reporters during a conference call that the chip giant is interested in the startup using its foundries and that it is willing to explore the possibility. According to a new Reuter’s story, however, foundry conversations take a long period since they require merging supply networks.
The bulk of Nvidia chips are now manufactured by Taiwan Semiconductor Manufacturing Company (TSMC). TSMC, on the other hand, makes processors for AMD, Apple, Broadcom, MediaTek, and a slew of other big names.
On the call, reporters questioned Huang whether he was concerned about working with a rival like Intel, to which he said that working with industry partners is important to the firm and that it has always worked with Intel. In fact, he claimed, “Intel has known our secrets for years.”
Intel’s foundry operations
Intel opted to extend its company by fabricating semiconductors that others had created as part of its new foundry services division early last year, after mostly producing chips it had built itself. The corporation announced a number of multibillion-dollar initiatives to develop new production facilities in both the United States and Europe as part of this growth.
As a result, investors have been waiting for chip design companies to make public statements about why they prefer Intel’s chip plants to TSMC’s. Qualcomm and Amazon were among the first clients Intel announced for its foundry division last year.
Intel CEO Pat Gelsinger told Reuters that the firm is “thrilled” that Nvidia wants to exploit its foundry capabilities, following a recent US Senate hearing. Despite the fact that there is “no specific date” for when this would begin, Gelsinger said that talks between the two firms are still underway.
We’ll have to wait and see whether Nvidia decides to have Intel create any of its chips, but if that happens, other major tech companies are likely to follow following.
To read our blog on “Intel is set to release the world’s first 16-core processor for laptops,” click here.
