Intel Will Get NVIDIA As A Foundry Customer, To Produce 5000 H100 Wafers Per Month

In a significant development for the semiconductor industry, Intel is reportedly on the verge of securing NVIDIA as a foundry customer. This potential partnership could see Intel producing up to 5,000 H100 wafers per month for NVIDIA, marking a pivotal moment for both companies and the broader tech landscape.

The Strategic Alliance

NVIDIA, a leader in AI and GPU technology, has been facing increasing demand for its high-performance chips. To meet this demand, the company has been expanding its supply chain, and Intel Foundry Services (IFS) has emerged as a key contender. Intel’s advanced packaging technology, particularly its Foveros 3D stacking, offers a competitive edge that NVIDIA is keen to leverage.

Intel’s IDM 2.0 Strategy

Under the leadership of CEO Pat Gelsinger, Intel has been aggressively pursuing its IDM 2.0 strategy, which aims to transform IFS into a global semiconductor powerhouse. This strategy includes significant investments in manufacturing capabilities and a focus on AI-driven products. The potential deal with NVIDIA aligns perfectly with Intel’s vision of becoming a leading AI factory.

Meeting the Demand

The collaboration is expected to address the supply constraints that NVIDIA has been grappling with. By adding Intel to its roster of suppliers, NVIDIA aims to ensure a steady flow of H100 GPUs, which are crucial for AI and high-performance computing workloads. The production of 5,000 wafers per month by Intel could significantly bolster NVIDIA’s capacity to meet market demands.

Technological Synergy

One of the critical aspects of this partnership is the technological synergy between the two companies. Intel’s Foveros technology, which involves advanced 3D stacking, is well-suited for NVIDIA’s high-performance chips. This collaboration could also pave the way for future innovations in chip design and manufacturing, benefiting the entire semiconductor ecosystem.

Market Implications

The potential partnership between Intel and NVIDIA is likely to have far-reaching implications for the semiconductor market. It could intensify competition with other foundry giants like TSMC, which has been a primary supplier for NVIDIA. Additionally, this move could enhance Intel’s position in the AI and GPU markets, areas where it has been striving to gain a foothold.

Conclusion

As Intel and NVIDIA move closer to finalizing this deal, the semiconductor industry is poised for a significant shift. The production of 5,000 H100 wafers per month by Intel could not only help NVIDIA meet its growing demand but also solidify Intel’s role as a key player in the AI era. This partnership exemplifies the dynamic nature of the tech industry, where strategic alliances and technological advancements drive progress and innovation.