"They're interested in us using their
foundries. We're very interested in exploring it," Huang said. But he
added that foundry discussions take a long time as it's about integrating
supply chains.
Early last year, Intel, which was making
mostly chips it designed, decided to expand its business into making chips that
others design as well, called the foundry business, and has announced several
multibillion-dollar projects for new manufacturing centers in the United States
and Europe.
Intel's shares rose as much as 2.5 percent
following Huang's comments.
Investors have been watching for public
commitments by chip design companies to use Intel's chip factories. Last year
Intel said Qualcomm and Amazon would be customers for its foundry business.
Intel CEO Pat Gelsinger told Reuters after
a US Senate hearing on Wednesday that his company is "thrilled for their
interest in using our foundry capabilities." He said he had "no
particular timeline." He confirmed that there were ongoing discussions
with Nvidia.
"I'm sure he's interested in having
more options ... and it doesn't cost him anything to say that," said
Bernstein analyst Stacy Rasgon about Huang's comments. "But it doesn't
tell you anything at all about what it's actually going to look like when they
get there."
Currently, Taiwan Semiconductor
Manufacturing Co. builds the bulk of Nvidia chips and Huang said "being a
foundry at the caliber of a TSMC is not for the faint of heart," adding
that it requires a change in culture to provide not just processes but service
Asked about whether he would be concerned
about working with a competitor like Intel, Huang said trusting and working
with industry partners is key and Nvidia has been partnering with many companies
including Intel for a long time.
"Intel has known our secrets for
years," he said. © Reuters
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