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Nvidia Wants to Make its Chips Inside Intel's Factories

By - Source: Forbes | B 57 comments

Nvidia hints that it has an idea how to solve its chip production problem that delayed the introduction of Kepler GPUs.

The company suggests that it could employ the resources of what is considered the most sophisticated chip manufacturing company on the globe: Intel.

“Why not be a foundry for all the mobile companies?” CEO Jen-Hsun Huang said last week. “There’s no shame in that.”

The two companies may have settled their most aggressive disputes, but collaboration and helping each other out is not what Intel has in mind.

“We have a small nascent foundry business, but our focus with our SOCs (systems on a chip) is really on Intel based platforms,” said Jon Carvill who joined Intel as a spokesman from Globalfoundries last year. “Our process technology is a huge advantage going forward in 2012 and 2013, so our focus at this time is on building Intel products, not on building products for our competitors.”

Huang is known to be provocative and very direct with his statements, but it is hard to believe that he was entirely serious with the remark that Intel should be building Nvidia's chips.

Over the course of this year and 2013, Intel will heavily rely on its manufacturing capability to gain an advantage over the armada of ARM manufacturers that will attempt to gain market share from Intel in the entry-level Windows notebook market. Intel may make a strategic mistake once in a while, but it certainly is not going to help its rivals to take away market share from its core business. Intel is allowing Tabula and Achronix to use its 22 nm 3D Trigate manufacturing capability to produce FPGAs. However, Intel typically only supports organizations that it believes can helps its bottom line and increase demand for Intel processors.

Increasing the availability of Tegra 3 processors is surely not what would contribute to the goal of growing revenue.

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Top Comments
  • 31 Hide
    starcraftmazter , March 27, 2012 12:29 AM
    Who wouldn't want to use Intel's fab factories? Honestly, AMD would jump at the opportunity :p 
  • 28 Hide
    phishy714 , March 27, 2012 12:57 AM
    This entire article could have been summarized in the following two lines:

    "Nvidia hints at wanting to make its chips in Intel factories.

    Intel: NO! GO AWAY!"
  • 25 Hide
    Tab54o , March 27, 2012 12:19 AM
    PyreeA possible Intel Nvidia merge?


    Not a chance. I don't think intel will go for it.
Other Comments
    Display all 57 comments.
  • -8 Hide
    Pyree , March 27, 2012 12:16 AM
    A possible Intel Nvidia merge?
  • 25 Hide
    Tab54o , March 27, 2012 12:19 AM
    PyreeA possible Intel Nvidia merge?


    Not a chance. I don't think intel will go for it.
  • 5 Hide
    nbelote , March 27, 2012 12:26 AM
    Intel wants to move up in the GPU game, and there's plenty of room for more competitors. AMD buying ATI was a move of necessity, AMD couldn't produce anything in the integrated or discrete graphics area. Intel buying nVidia? Not a chance.
  • 31 Hide
    starcraftmazter , March 27, 2012 12:29 AM
    Who wouldn't want to use Intel's fab factories? Honestly, AMD would jump at the opportunity :p 
  • 11 Hide
    maxinexus , March 27, 2012 12:41 AM
    Yap intel knows how to build chips in its own backyard.
  • 13 Hide
    maxinexus , March 27, 2012 12:42 AM
    Nvidia and intel merger = AMD death => not gonna happen just from the pure monopoly prospective
  • -1 Hide
    stm1185 , March 27, 2012 12:48 AM
    With AMD abandoning the high end CPU market, almost all high end gpus are going into systems with Intel CPUs, so Intel working with Nvidia to put out those GPUs does not seem that far fetched.
  • 28 Hide
    phishy714 , March 27, 2012 12:57 AM
    This entire article could have been summarized in the following two lines:

    "Nvidia hints at wanting to make its chips in Intel factories.

    Intel: NO! GO AWAY!"
  • 0 Hide
    papaspud , March 27, 2012 12:57 AM
    “Our process technology is a huge advantage going forward in 2012 and 2013, so our focus at this time is on building Intel products, not on building products for our competitors.”

    So- no Intel is using their manufacturing muscle for their own projects and profits. Would love to see nVidia products on a 14 nm scale.....sweet.
  • 5 Hide
    tomfreak , March 27, 2012 1:00 AM
    Tomshardware However, Intel typically only supports organizations that it believes can helps its bottom line and increase demand for Intel processors.
    If thats the case then Nvidia should have been offer up their graphics technology to integrate Nvidia GPU into Sandy/Ivy bridge or future Intel CPU? After all the only reason people going for AMD APU is their GPU performance which Intel are lacking horribly.
  • 4 Hide
    kcorp2003 , March 27, 2012 1:10 AM
    Intel won't do it because that means the enemy chip will make it in time to be competitive with theirs.
    Its better off for delays for the competitors.
  • -8 Hide
    killerchickens , March 27, 2012 1:27 AM
    Intel would be better off helping amd than nvidia because if amd dies intel dies.
  • 10 Hide
    ramon1 , March 27, 2012 1:55 AM
    Will never happen, Huang will demand to become The Master of the Universe...sorry...the CEO of the new company.
  • 7 Hide
    omega21xx , March 27, 2012 2:07 AM
    If you remember correctly, Nvidia would want to lead in a merger if they merged with anyone. When AMD looked at buying Nvidia, the only reason they bought ATI was because Nvidia would only do it if they lead the whole company after the merger. Intel giving leadership to Nvidia is not going to happen, so there are no chances of a Nvidia merger with Intel.
  • 4 Hide
    razor512 , March 27, 2012 2:09 AM
    Since intel has a pretty good production cycle for low nm chip, AMD should get back into the high end desktop CPU game and use intel factories :) 

  • 0 Hide
    hawkwindeb , March 27, 2012 2:21 AM
    You don't really know the future, so never say never ;-)
  • 3 Hide
    supall , March 27, 2012 2:24 AM
    Intel merging with NVidia will have anti-trust written all over it. It won't happen, not at the market share Intel possesses in desktop CPUs.
  • 4 Hide
    bardacuda , March 27, 2012 2:33 AM
    I don't get it...the title says nVidia hints at using Intel fabs to solve Kepler production issues, but then goes on to say that Intel won't do it because they don't want to help a company make competing products, referring to ARM chips used in entry-level notebooks. Kepler and ARM are two different things. Kepler products do not compete with Intel products in anyway. Do they really think pumping out GTX 680s is going to hurt sales of their HD4000 IGPs?
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