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Intel-Nvidia expected deal is forecast to have mixed consequences for Asian semiconductor suppliers.
Friday, September 19, 2025 at 10:10 AM
A potential collaboration or deal between Intel and Nvidia is anticipated to create both positive and negative financial implications for semiconductor manufacturers and suppliers operating across the Asian supply chain.
Context
In September 2025, Nvidia announced a major partnership with Intel, investing $5 billion for a roughly 4% stake. The deal involves co-developing future products that will integrate Intel's central processors with Nvidia's AI chips. As part of the agreement, Intel Foundry will supply the CPUs and provide advanced packaging services for some of these joint products, a significant boost for its manufacturing ambitions.
This alliance is a "mixed blessing" for Asian chipmakers. While Nvidia confirmed its core manufacturing partnership with TSMC remains unchanged for now, the deal is seen as "definitely bad news for Intel's competitors" in the long run. It strengthens Intel as a future foundry rival, with the first co-developed products not expected until 2027 or 2028. The partnership also puts significant pressure on competitor AMD, which now faces a powerful collaboration in the data center market.
Sources (9)
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