Nvidia is seemingly considering Intel’s foundries to manufacture its H100 AI GPUs. Team Green may start slow with a small batch to test the waters, potentially leading to larger orders if everything goes as planned.
Following the great demand for its H100 GPUs and TSMC’s overloaded calendar, Nvidia is apparently looking for alternative factories to build its chips. The GPU giant may soon add Intel Foundry Services (IFS) to its suppliers since TSMC alone can’t satisfy its needs.
Currently, all major Nvidia chips – A100, A800, A30, H100, H800, H200, GH200, etc. – are manufactured by TSMC. This makes availability very susceptible to unexpected events, be they natural or political in nature. It’s a delicate position for one of the most valued companies on the planet.
According to MyDrivers’ sources, Intel has the capacity to produce 5,000 wafers per month for Nvidia using its advanced process and packaging technologies. While the exact chips remain unknown, Nvidia is likely to go with its high-margin H100 AI GPUs, which are in short supply. Depending on the wafer size and yield, Intel could make between 300,000 and 800,000 H100 GPUs per month – roughly speaking.
Although TSMC expects to double its capacity by the end of 2024 to 20,000 wafers per month, up from 11,000 back in 2023, Nvidia’s appetite will not be satiated. Since Intel already has an alternative to TSMC’s CoWoS-S packaging in the form of Foveros 3D stacking technology, Nvidia has more reasons to diversify.
Intel’s investments in its fabrication facilities through the IDM 2.0 strategy are clearly paying off if a giant such as Nvidia is tempted. This collaboration will also be much appreciated by Intel seeing how its share price just plummeted by over 20%. Team Blue may leverage this opportunity to reassure investors of its capacity to overcome this ordeal, particularly after mass layoffs and instability issues.