Don't do it Nvidia Intel's dying according to Rob Mafia.
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Rivals Nvidia and Intel Might Join Forces To End Chip Shortage
Nvidia and Intel may come together to manufacture more chips as shortages persists.
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But economics doesn't typically work like that. In the words of renowned British economist Charles Robbins, "Humans want what they can't have."
Abundance and scarcity are two sides of the same coin. Societies typically deal with scarcity by increasing supply.
And if there's one thing that's dominated news headlines when it comes to scarcity its chips or semiconductors."
"Makers of semiconductors or chip manufacturers have been grappling with the impact of global supply chain shortages that have led to a dearth of chips that are used in everything from cars to home appliances for nearly two years."
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Everyone from automakers like Ford (
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Get Ford Motor Company Report and General Motors (
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AAPL) -
Get Apple Inc. Report, which has started producing its own chips, to semiconductor giants; are trying to find ways around this conundrum.
And Nvidia (
NVDA) -
Get NVIDIA Corporation Report the largest chip company in America by market value is open to exploring a deal with rival chipmaker Intel (
INTC) -
Get Intel Corporation Report as it seeks to expand and diversify its supply base."
I predict Samsung, IBM and Globalfoundries could join it.
https://www.thestreet.com/.amp/tech...-intel-might-join-forces-to-end-chip-shortage
"Nvidia Chief Executive Officer Jensen Huang said he wants to diversify his company’s suppliers as much as possible and will consider working with Intel. Nvidia currently uses Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co to build its products."
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We’re very open-minded to considering Intel,” Huang said Wednesday in an online company event. “Foundry discussions take a long time. It’s not just about desire. We’re not buying milk here.”
Intel jumped to a session high on the news. CEO Pat Gelsinger announced last year that the chipmaker, once the world’s technical leader, would seek to construct new factories and manufacture products for others, even rivals.
Huang said Intel’s effort to compete with the two Asian companies as a foundry operator will require more than building plants, it will have to fundamentally change its culture and operations.
“Being a foundry at the caliber of TSMC is not for the faint-hearted,” he added. “TSMC dances with the operations of 300 companies worldwide.”
Intel will need to learn to attune itself to the way that customers want to work, which hasn’t been part of the company’s experience as it makes chips of its own design, Huang said. Nonetheless, moving into the business of being an outsource manufacturer is something that Intel has to do, he said."