In a nutshell: Nvidia presently dominates the AI accelerators and GPU chip market. The corporate depends closely on manufacturing prowess to maintain its gross sales momentum, to the extent that it could even search help from Intel.
Nvidia GPUs held greater than 70 p.c of the info middle processor market share within the newest quarter, with the vast majority of chips being manufactured by the Taiwanese big TSMC. Nonetheless, the panorama would possibly change within the not-so-distant future, because the Santa Clara-based company is as soon as once more hinting at extra partnership alternatives with surprising “third events” within the burgeoning chip foundry business.
Talking on the latest UBS Global Technology Conference, Nvidia’s Chief Monetary Officer Colette Kress shared optimistic remarks in regards to the Intel Foundry Providers initiative. Kress noted that the corporate already collaborates with “nice” foundry companions for its manufacturing wants, particularly mentioning TSMC and Samsung.
Expressing a need to work with a 3rd foundry companion, Kress identified that Intel’s foundry enterprise just lately entered the worldwide high 10 foundry record, because of a major quarterly income improve (34.1 p.c). Whereas TSMC stays Nvidia’s major manufacturing companion, Samsung was primarily concerned within the improvement of Ampere GPUs, powering the earlier technology of GeForce graphics playing cards and HPC accelerators.
The Korean big has collaborated with Nvidia for the previous two years to boost its place as a chip provider, providing superior manufacturing processes and built-in providers for varied part varieties. The corporate now aspires to safe a bigger share of Nvidia orders for present and next-gen GPU and HPC AI chips.
Nvidia is predominantly targeted on its partnership with TSMC. Kress emphasised how the extra manufacturing capabilities being constructed by the Taiwanese firm within the US will undoubtedly be an choice to contemplate. Nonetheless, this does not preclude Nvidia from probably including one other foundry, reminiscent of Intel’s.
The x86 big has been ceaselessly talked about as Nvidia’s potential subsequent foundry companion within the US. A collaboration with Nvidia may considerably help Intel in remodeling its Foundry Providers right into a fully-fledged enterprise unit.
Nvidia CEO Jensen Huang beforehand steered Intel as a possible manufacturing companion earlier this yr, however progress may be slower than anticipated. Huang remarked that the US continues to be 20 years away from attaining provide chain independence within the chip enterprise.
