NVIDIA and Apple Explore Intel Partnership to Diversify Chip Supply
The major US technology companies NVIDIA and Apple are changing their manufacturing operations because they want to decrease their dependency on TSMC. Intel will work with these tech giants on future projects because they need supply chain diversification and political pressure from the United States demands more domestic production.
NVIDIA Targets Feynman Architecture for Intel Collaboration
Supply chain sources indicate that NVIDIA has made a tentative commitment to work with Intel on developing its Feynman architecture platform which is set to launch in 2028. The company plans to invest in Intel according to its forecasted investment.
The manufacturing division for the Feynman architecture chip will include these components
- TSMC will maintain control of all GPU Die production operations.
- I/O Die Production will partially utilize Intel's 18A or 14A process, depending on yield rates closer to the 2028 mass production target.
- Advanced Packaging Intel's EMIB technology will handle around 25% of the advanced packaging workload, while TSMC will control approximately 75% of the remaining work.
The strategy allows NVIDIA to support American manufacturing initiatives while it maintains its core high-end production operations with TSCM for risk management purposes. The collaboration will begin with development work on non-essential production elements that will be performed at lower production volumes.
Apple Considers Intel for Entry-Level Processors
Apple is also reportedly in negotiations with Intel to manufacture entry-level M-series processors for MacBooks. Currently, these chips are produced by TSMC. The partnership will change Apple operations because it will start using Intel x86 processors to build its own Arm-based silicon after 2020 so it can manage its ecosystem without Intel production line delays.
The renewed interest in Intel is driven by several factors
- Political and Tariff Pressures The Trump administration requires compliance with US goals for domestic manufacturing.
- Risk Diversification Businesses need to reduce their reliance on one specific foundry.
- Manufacturing Capacity Management Businesses must prepare for upcoming manufacturing capacity shortages.
Strategic Implications for TSMC
The dual-foundry model creates an advantage to TSMC because some orders will move to Intel according to industry analysts. TSCM will send non-core orders to Intel and lower-volume orders to Intel because this will help TSCM to
- Alleviate Antitrust Concerns TSCM can defend itself against monopoly claims by lowering its dominant market position.
- Navigate Political Pressure US government relations improve through cooperation with US manufacturing initiatives.
- Focus on High-End Production TSMC retains the critical, high-volume orders for core high-end chips, maintaining its leadership position.
Major companies such as Google Microsoft and AWS are currently negotiating similar plans to diversify their operations. The tech giants demand more from their vendors than what Intel can currently provide, while TSCM has established itself as a dependable operational model.
