News

Nvidia's $5B Investment in Intel and Chip Partnership Poses Mixed Outlook for Asian Foundries

Friday, September 19, 2025 at 10:10 AM

Nvidia's $5 billion investment in Intel and a new chip co-development deal is seen as a double-edged sword for Asian chipmakers like TSMC and Samsung. The partnership could intensify long-term competition, particularly if it helps validate Intel's foundry business, but it could also ease current U.S. scrutiny on foreign rivals.

Context

In a landmark September 2025 deal, Nvidia announced a $5 billion investment in Intel to co-develop next-generation data center and PC chips. The partnership pairs Nvidia's AI software stack with Intel's CPUs and advanced packaging, a move that sent Intel stock soaring nearly 23%. While the deal does not yet shift Nvidia's core chip manufacturing from TSMC, it signals a major U.S.-backed effort to build a powerful domestic supply chain. This alliance poses a mixed threat to Asian foundries. The immediate risk is to AMD, as the new pact could erode its server market share and reduce its wafer orders from TSMC. In the long term, a revitalized Intel foundry and packaging business creates a formidable new competitor for Samsung Electronics. The strategic realignment also adds pressure across the Asian supply chain, indirectly affecting players like Hua Hong Semiconductor by strengthening a U.S.-centric ecosystem.