Last year, Intel decided to extend its business by manufacturing chips designed by others. They coined this as “Foundry Business” and announced a slew of multi-billion dollar projects for creating centers in America and Europe. Following Nvidia CEO Huang’s comments, Intel’s shares increased by 2.5%.
Jensen Huang – CEO of Nvidia Corp (an American multinational technology company) – said on calls with reporters that Nvidia Corp is keen to explore manufacturing chips using Intel, an American multinational corporation and technology company.
Huang further said Intel Corp. is keen on allowing Nvidia to use their foundries, and Nvidia is ready to explore it. However, he mentioned that foundry debates take some time since it’s about incorporating supply chains.
Intel’s recent past
In the past year, Intel – making most chips they invented – decided to broaden their business and corporation into manufacturing chips other designs.
They called foundry business, announcing many multi-billion dollar projects to manufacture centers both in Europe and America. Interestingly, after Huang’s comments, Intel shares increased by a staggering 2.5%.
Investors have long been waiting and watching for commitment by companies designing chips to utilize Intels’ chip factories.
In 2021, Intel said Amazon.com and Qualcomm Inc would-be clients for their foundry business. After the Senate hearing, Pat Gelsinger, the Intel CEO, said that the company is delighted to know they want to use Intel’s foundry capabilities.
Gelsinger further mentioned that he didn’t know about the timeline and confirmed ongoing discussions and meetings with Nvidia.
Bernstein analyst Stacy Rasgon stated about Huang’s comments: “I’m sure he’s interested in having more options … and it doesn’t cost him anything to say that. But it doesn’t tell you anything at all about what it’s actually going to look like when they get there.”
Nvidia’s current stance
Presently, TSMC “Taiwan Semiconductor Manufacturing Company” builds a considerable number of Nvidia Corps chips.
When asked if he was concerned about collaborating with Intel, a competitor, he said that trust and collaboration with industry giants are crucial; Nvidia has long partnered with several globally-renowned corporations, including Intel.
He said, “Intel has known our secrets for years.”