Huang Renxun announced a "revolutionary" chip collaboration: Intel Corporation (INTC.US) providing x86, NVIDIA Corporation (NVDA.US) contributing GPU, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) responsible for manufacturing.

NVIDIA Corporation (NVDA.US) CEO Jensen Huang announced at a press conference on Thursday that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (TSM.US) will provide manufacturing support for the "revolutionary" chips produced through a collaboration between NVIDIA Corporation and Intel Corporation (INTC.US). This partnership will focus on creating custom CPUs for data centers that can access NVIDIA Corporation's artificial intelligence ecosystem, while also advancing innovation in the personal computing sector. Huang emphasized that Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR, as a world-class manufacturing facility, has top-notch technology and will play a crucial role in this collaboration. The partnership between NVIDIA Corporation and Intel Corporation will integrate NVIDIA Corporation's NVLink technology to deeply integrate artificial intelligence and accelerated computing capabilities with Intel Corporation's x86 architecture, creating customized products for data centers and the PC market. Intel Corporation CEO Pat Gelsinger stated that the two companies will continue to closely collaborate with Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR and evaluate the possibility of using the 14a and 18a processes in the future. As a key part of the collaboration, NVIDIA Corporation will invest $5 billion in Intel Corporation, with plans to combine Intel Corporation CPUs with NVIDIA Corporation GPUs to develop products for data centers and personal computers. Huang noted that this collaboration will create custom chips integrating top CPUs and GPUs, particularly in the laptop market. By integrating CPUs and GPUs closely through NVLink, he believes that there is a market opportunity of approximately $500 billion annually - with the data center CPU market estimated to be worth $250 billion and annual sales of around 150 million PC laptops. He emphasized that this collaboration will not affect NVIDIA Corporation's partnership with Arm (ARM.US), and the company will continue to advance the Arm roadmap. Regarding the background of the collaboration, Huang clarified that the Trump administration was not involved in the deal, but U.S. Commerce Secretary Howard Lutnick expressed excitement about the collaboration between the two U.S. companies. Analysts believe that this collaboration is significant for Intel Corporation, but the company still needs to prove its position as a leader in chip manufacturing. Julian Lin, head of Best Growth Stock Investment Group, pointed out that NVIDIA Corporation's investment demonstrates trust in Intel Corporation and may help it return to profitability, but Intel Corporation still needs to show more substantial progress. Jonathan Weber, head of Cash Flow Club, believes that the alliance between NVIDIA Corporation and Intel Corporation will put pressure on AMD (AMD.US). While Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR may allocate some manufacturing business to Intel Corporation in the future, it currently maintains a strong position in the industry.