According to Bloomberg, Nvidia is open to using Intel as a possible manufacturer.
Nvidia is one of the largest buyers of outsourced chip production in the industry, and currently uses Taiwan Semiconductor Manufacturing (TSMC) and Samsung Electronics to build its products.
Yesterday, Nvidia’s Chief Executive Officer Jensen Huang said in an online company event that the company is always looking to broaden its suppliers, and working with Intel is therefore on the table.
However, Huang noted that becoming a foundry is difficult and Intel has a long journey ahead of it before it is ready to serve Nvidia’s needs.
“We’re very open-minded to considering Intel, but Foundry discussions take a long time. It’s not just about desire,” said Huang.
This comes on the heels of Intel’s CEO Pat Gelsinger’s announcement last year that the chipmaker is looking to construct new factories and manufacture products for others, even rivals.
Huang, however, said that it will take more than just building plants for Intel to compete with Nvidia’s current Asian suppliers. For Intel to become a foundry, it will also have to change its culture and operation strategies.
“Being a foundry at the caliber of TSMC is not for the faint-hearted,” he added. “TSMC dances with the operations of 300 companies worldwide.”
Intel currently makes chips of its own design, which has given it a unique advantage in the market, which has lent itself to the difficulty of attuning itself to the way customers want to work.
Nonetheless, moving into the business of being an outsource manufacturer is something that Intel must do if it aims to grow the company, Huang said.
It’s still too early to tell whether or not this talk will translate into a partnership, but it’s an exciting prospect for the chip-making industry and its consumers.
Loading ...
