Intel’s Next-Gen Manufacturing Gets a Lifeline from Nvidia’s Strategic $5B Deal
Nvidia’s investment and product partnership may secure Intel’s 14A process by aligning custom x86 CPUs, NVLink designs and critical customer volume
Nvidia has agreed to invest five billion dollars in Intel for roughly a four percent stake, in a deal that includes developing multiple generations of joint products including custom data-centre and PC chips linked via Nvidia’s NVLink technology.
Although Nvidia has not committed to using Intel’s advanced foundry process directly, analysts believe the agreement strengthens Intel’s bid to make its upcoming 14A node commercially viable.
Intel will build custom x86 central processing units for Nvidia’s AI infrastructure, while Nvidia GPU chiplets will be integrated into future PC system-on-chips.
These products are expected to leverage Intel 14A, a process node Intel is targeting for risk production in 2027, which promises significant performance and efficiency improvements over its predecessor.
The new node incorporates technologies such as RibbonFET transistors, PowerDirect (a backside power-delivery architecture), and so-called Turbo Cells to improve critical timing paths.
However, the advanced lithography tools required—High-NA extreme ultraviolet equipment—are costly, and wafer costs are expected to be higher than with the 18A process.
Intel has emphasised that further investment in 14A depends on securing external customer commitments.
In recent months both Apple and Nvidia have reportedly had access to early Process Design Kits for 14A and are considering trial production or limited runs, especially for lower-end GPUs in Nvidia’s case.
The stock market responded sharply: Intel shares surged more than twenty-percent in a single day following the announcement.
For Nvidia, this partnership offers not only nearer-term access to Intel’s enterprise customer base but also stronger alignment in the PC market, where integrated CPU-GPU chips may offer competitive advantages over rivals.
The deal also places pressure on competitors, particularly AMD, as this tighter integration could tilt design wins and customer engagements toward Intel-Nvidia solutions.
For Intel, success with 14A is seen as critical to its turnaround strategy, but execution risk remains high in both technology development and manufacturing ramp-up.
Although Nvidia has not committed to using Intel’s advanced foundry process directly, analysts believe the agreement strengthens Intel’s bid to make its upcoming 14A node commercially viable.
Intel will build custom x86 central processing units for Nvidia’s AI infrastructure, while Nvidia GPU chiplets will be integrated into future PC system-on-chips.
These products are expected to leverage Intel 14A, a process node Intel is targeting for risk production in 2027, which promises significant performance and efficiency improvements over its predecessor.
The new node incorporates technologies such as RibbonFET transistors, PowerDirect (a backside power-delivery architecture), and so-called Turbo Cells to improve critical timing paths.
However, the advanced lithography tools required—High-NA extreme ultraviolet equipment—are costly, and wafer costs are expected to be higher than with the 18A process.
Intel has emphasised that further investment in 14A depends on securing external customer commitments.
In recent months both Apple and Nvidia have reportedly had access to early Process Design Kits for 14A and are considering trial production or limited runs, especially for lower-end GPUs in Nvidia’s case.
The stock market responded sharply: Intel shares surged more than twenty-percent in a single day following the announcement.
For Nvidia, this partnership offers not only nearer-term access to Intel’s enterprise customer base but also stronger alignment in the PC market, where integrated CPU-GPU chips may offer competitive advantages over rivals.
The deal also places pressure on competitors, particularly AMD, as this tighter integration could tilt design wins and customer engagements toward Intel-Nvidia solutions.
For Intel, success with 14A is seen as critical to its turnaround strategy, but execution risk remains high in both technology development and manufacturing ramp-up.
