So some pretty big news came out today regarding the semi-conductor industry. As we are probably all aware there is a chip shortage going on and Intel is investing billions into factories to build these chips. As of right now Intel has 4 confirmed customers which are Microsoft, IBM, Amazon, and Qualcomm. They said in the past they are in talks with more companies but nothing was confirmed so they weren’t releasing anything. Today basically confirmed that one of the companies they are in talks with is Nvidia.
Nvidia CEO was questioned about Intels Foundry Service. He said “Our strategy is to expand our supply base with diversity and redundancy at every single layer. At the chip layer, at the substrate layer, the system layer, at every single layer. We've diversified the number of nodes, we've diversified the number of foundries, and Intel is an excellent partner of ours[…]. They're interested in us using their foundries, and we're very interested in exploring it,” said Huang. Here is the whole article if you want to read it.
Now this didn’t make a whole lot of sense to me considering Intel and Nvidia are direct competitors to each other. Especially as of this year when Intel released their GPU Intel ARC.
I think what this mainly shows is just how bad the chip shortage is right now and how desperate companies are to get their chips manufactured so they can release their products. As of right now there is really no confirmed end in sight for the shortage and it will be interesting to see how this plays out over the next few years.
This news caused semi conductor stocks to really move today.
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