Citi: Expects Taiwan Semiconductor Manufacturing to Remain Primary Foundry for NVIDIA and Intel

Deep News
09/23

Citi analysts report that following collaboration between NVIDIA and Intel, Taiwan Semiconductor Manufacturing may still remain the primary foundry for both companies. NVIDIA confirmed in August that Taiwan Semiconductor Manufacturing is producing six new chips for its next-generation Rubin architecture. Citi analysts expect that any potential jointly developed products between NVIDIA and Intel will continue to rely on Taiwan Semiconductor Manufacturing's technology in the coming years. They forecast that by 2026, Taiwan Semiconductor Manufacturing's revenue from NVIDIA will grow 50%, while revenue from Intel will increase 20%. "We would not be surprised if other major US technology companies/existing Taiwan Semiconductor Manufacturing clients announce investments in Intel in the near future," the analysts stated. However, they noted that Taiwan Semiconductor Manufacturing's leading position in the foundry business remains solid, and expect the company to continue investing in its Arizona wafer fabrication facility to serve US customers.

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