Nvidia Evaluates Manufacturing with Intel 18A but Does Not Sign Agreement
According to a report from the agency Reuters, Nvidia has been in talks to evaluate manufacturing its future chips using the advanced process technology Intel Foundry 18A. However, these discussions have not culminated in a formal agreement, meaning that, for now, the GPU design giant will continue producing with its current partners, TSMC and Samsung. 🧠
Intel's Attempt to Attract External Clients
Intel seeks to position its foundry business as a real alternative to TSMC. Its 18A node represents one of its most advanced and competitive processes. The fact that a company of Nvidia's caliber has considered this option, even without committing, lends credibility to Intel's efforts to attract major silicon designers. This mutual interest underscores a broader trend in the industry.
Key Factors in Nvidia's Decision:- Diversify the Supply Chain: After global issues, companies like Nvidia, AMD, and Qualcomm seek to avoid depending on a single manufacturer.
- Evaluate Capacity and Risk: Adopting a new manufacturing process involves technical challenges and questions about large-scale production capacity.
- Maintain Performance and Delivery: For Nvidia, switching suppliers directly affects the performance, cost, and timelines of its future GPUs and AI chips.
The dance of potential deals in the chip industry seems almost as complex as the silicon itself.
Implications for the Market Status Quo
This news has two sides. On one hand, it shows that Intel Foundry manages to catch the attention of the most important players. On the other, it reveals the extreme caution they maintain when considering such a strategic change. The potential benefits of diversifying clash with the immediate risks of disrupting a proven and optimized production chain.
Consequences of Maintaining the Status Quo:- TSMC and Samsung Retain Their Dominance: They remain the preferred manufacturers for Nvidia's most advanced designs.
- Intel Must Prove Its Technology: It needs to demonstrate that the 18A node is reliable and competitive in performance and cost to gain trust.
- The Industry Continues Exploring: The dialogue continues, maintaining competitive pressure and encouraging constant evaluation of alternatives.
A Pending Strategic Decision
For now, for Nvidia, the perceived risks of switching suppliers outweigh the benefits. The company prefers to maintain its current strategy with established partners. This episode makes it clear that, although the interest in diversifying manufacturing is real and responds to geopolitical and supply needs, final decisions are made with enormous technical and commercial prudence. Intel's path to becoming a top-tier foundry still has obstacles to overcome. ⚖️