Nvidia would team up with Intel to produce thousands of additional GPUs as manufacturer TSMC now reaches its capacity limits.

Nvidia would outsource part of the production of its GPUs to Intel starting next year. This is stated by anonymous sources, but has not yet been confirmed by the companies involved. Nvidia would utilize Intel Foundry Services with regards to Foveros packaging technology. It is the closest thing to TSMC’s CoWoS.

We previously wrote that TSMC is at the limit of its CoWoS capabilities. So customers like AMD and Nvidia who rely on it for their chips can’t buy as many components as they want.

CoWoS stands for Chip-on-wafer-on-substrate and is a so-called PackagingTechnology that involves the way a chip is assembled from various components. CoWoS efficiently assembles separately manufactured chips into a whole, with very little spacing between components. This has a direct impact on the performance of the entire chip. Intel’s Foveros is an alternative with slightly different features but would still produce similar products.

Confirm

Nvidia cannot simply use Intel Foundry Services and must first validate its GPU designs with Intel’s packaging technology. It is not yet clear exactly which GPUs Nvidia wants Intel to produce and how many. According to the sources, this amounts to thousands of wafers per month, good for hundreds of thousands of chips. That would be a big boost for Nvidia. The company is also diversifying its supply chain.

The collaboration is also a good thing for Intel. The company has long wanted to make its foundry capabilities available to third parties. With Nvidia, Intel gains a potentially important customer.