TMTPOST --   The latest technology   collaboration   between Nvidia   Corporation and Intel   Corporation will   not pose   any threat to Taiwan Semiconductor Manufacturing Co.   ( TSMC ) ’ s   chip   tech   leadership, so artificial intelligence ( AI )   chips of the   world ’ s   top   contract chip manufacturer   will not   be affected,   suggested TF   International   Securities   analyst Ming-Chi Kuo   on Thursday.

Credit：TSMC

Kuo commented TSMC   is   likely to maintain its advantage at advanced nodes   at least   through   2030, and the   Nvidia-Intel partnership   is unlikely to change   TSMC ’ s leading-edge position. As   AI chips requires leading-edge advanced nodes, TSMC ’ s AI-chip orders should   remain intact, said   Kuo in a   social   media   post.

Kuo   acknowledged   Nvidia ’ s investment in   Intel   could   shift market share among   competitors   of both companies, such   as Advanced Micro Devices, Inc.   ( AMD ) , which would   in turn affect   TSMC ’ s orders. But he noted both Nvidia and Intel are expected to remain key customers of TSMC, and the networking products   using less advanced nodes   contribute   a smaller portion of   its revenue. Therefore, he believed   the overall risk   for TSMC   remains manageable.  

Nvidia on Thursday announced   it will invest $5 billion in Intel ’ s common stock, and two companies will also jointly develop multiple generations of custom data center and personal computer ( PC ) products, focusing on connecting both companies ’ architectures using Nvidia NVLink, the high-speed interconnect for graphics processing unit ( GPU ) and CPU processors in accelerated systems.

Nvidia said it will collaborate with the chipmaker to create AI systems for data centers that combine Intel ’ s x86-based central processors with Nvidia ’ s GPUs and networking. Intel will build and deliver x86 system-on-chips ( SOCs ) that integrate Nvidia RTX GPU chiplets.

Kuo   said the partnership could define and accelerate the AI PC Landscape. For Nvidia, developing its own Windows-on-ARM processors carries high uncertainty, while   for Intel, establishing a competitive edge in GPUs is difficult. Given these facts, Kuo said teaming up ( CPU + GPU ) could create powerful synergies and advantages across the PC ecosystem.

The biggest question is if Nvidia will manufacture at Intel ’ s fabrications, Wolfe Research anlayst   Chris Caso commented following the announcement of collaboration. Nvidia   CEO Jensen Huang at   a   press conference   on Thursday   decline to answer if Nvidia will use Intel ’ s foundry, stating the announcement is about CPUs, not exactly how these chips will be manufactures.

The custom Nvidia CPUs made using Intel ’ s designs will largely be fabricated by   TSMC   using its   silicon   wafers, which will then be sent to Intel ’ s foundry to add key components known as packaging, which Intel is expected to make,   the Wall Street Journal reported, citing   people   familiar   with the matter.   The report   said   what the Thursday ’ s   deal   doesn't   significantly address   is   Intel ’ s to become a world-leading contract chip maker — called a foundry in the industry.