Intel Corp. has secured a $5 billion investment from Nvidia Corp., in a move that expands collaboration between two of the biggest names in semiconductors.
The partnership will focus on developing chips for personal computers and data centres, strengthening Intel’s position as a manufacturing hub and diversifying Nvidia’s production strategy.
The announcement has also influenced markets, with Intel’s shares rising 30% and suppliers across Asia seeing sharp gains.
While stock rallies underline immediate reactions, the long-term implications of the deal lie in reshaping chip development and global supply chains.
Chip collaboration expands across PCs and data centres
The agreement will see Intel and Nvidia co-develop processors aimed at powering PCs and data centres, two areas where demand is driven by artificial intelligence and cloud services.
By combining resources, Nvidia gains access to Intel’s capacity, while Intel cements its relevance in advanced chip design.
Analysts suggest that the partnership signals a new phase in Intel’s procurement strategy, as earlier concerns of capital expenditure cuts now appear less likely.
Nvidia’s move also highlights its efforts to reduce reliance on Taiwan Semiconductor Manufacturing Co. (TSMC), which currently handles a significant portion of its production.
The deal opens the possibility of Intel taking on a greater role in producing chips for Nvidia, potentially altering the balance of global manufacturing.
Asian suppliers benefit from Intel link
The partnership immediately boosted Asian companies tied to Intel. In Japan, Lasertec Corp., which derives nearly a third of its revenue from Intel, surged as much as 15% in its biggest rise since April.
Ibiden Co. gained 12% at one point, while Tokyo Electron Ltd., Screen Holdings Co., and Shin-Etsu Chemical Co. also climbed.
In South Korea, Intekplus Co. rose 18%, its strongest increase in a month. Other Intel-related South Korean firms, including PSK Inc., Jusung Engineering Co., and Komico Ltd., also gained more than 5%.
In China and Hong Kong, Montage Technology Co. rose as much as 11%.
The spread of gains across multiple Asian markets shows how tightly Intel’s supply chain is integrated across the region, and how Nvidia’s investment could translate into higher demand for inspection tools, materials, and other specialised equipment.
TSMC sees slight decline
While Intel’s suppliers benefited, Taiwan Semiconductor Manufacturing Co. faced a modest setback. Its shares dipped as much as 1.2%, with concerns that Intel may capture part of Nvidia’s production share.
TSMC currently derives about 3% of its revenue from Intel, but analysts suggest the Intel-Nvidia deal could affect its future valuation if Nvidia shifts more manufacturing to Intel.
The reaction underscores how strategic partnerships can create uneven impacts across the semiconductor industry, with some suppliers gaining while others face new competitive pressures.
A changing semiconductor landscape
The $5 billion partnership highlights the interconnected nature of the global semiconductor sector, where cooperation between giants can reshape demand across entire regions.
For Intel, the deal marks an important step in securing its relevance in advanced chip production. For Nvidia, it adds flexibility in managing manufacturing needs in a competitive environment.
Suppliers across Asia are now positioned to play a larger role in enabling Intel to expand capacity, while rivals such as TSMC weigh the risks of reduced market share.
Beyond immediate market gains, the Intel-Nvidia collaboration illustrates how alliances are shaping the next phase of semiconductor development.
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