Nvidia to Shift Some Chip Production to Intel by 2028 in US Supply Chain Diversification

Nvidia (NVDA-US) will move portions of its chip manufacturing to Intel (INTC-US) starting in 2028, adopting Intel's 18A or 14A process for I/O chips and utilizing Intel's EMIB advanced packaging. The shift, seen as a response to US political pressure and supply chain resilience efforts, follows Apple's (AAPL-US) similar move to diversify from TSMC. The partnership will focus on low-volume, non-core components, with GPU core chips remaining at TSMC. Intel's share of advanced packaging is estimated to reach up to 25%, while TSMC retains 75%. Intel CEO confirmed two clients are evaluating its 14A process, with production expected by 2028. TSMC views the diversification as strategically beneficial, reducing monopoly concerns and political pressure while maintaining its lead in advanced node manufacturing. Major US tech firms including Google, Microsoft, and Amazon are similarly exploring Intel partnerships to mitigate reliance on TSMC.