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Nvidia needs more silicon manufacturing partners to prevent TSMC from charging a significant premium. Their choices are very limited today, and almost non-exist
by lumost 1y ago
Nvidia needs more silicon manufacturing partners to prevent TSMC from charging a significant premium. Their choices are very limited today, and almost non-existent outside of Asia.
Given a real geopolitical risk and NVidia’s current valuation - 5 billion seems cheap if it secures them an alternative manufacturing partner.
- richardanaya 1y agoIsn't it limited because TSMC is just so good at their job? I thought I read places that their error rates are lowest in the industry.
- lumost 1y agoWhich leads to multiple questions - if NVidia can't manufacture elsewhere, will the best in the industry get much more expensive? is the GPU value in CUDA or TSMC? At best, the two companies are locked into a monopsomy/monopoly market for the next 2 years where TSMC needs NVidia to sell chips and NVidia needs TSMC to make them - in the long term, these arrangements are rarely stable. NVidia wants more manufacturing partners, and TSMC wants more GPU makers.
- kgc 1y agoAs part of this deal, is Intel doing any GPU fabrication?