Nvidia CEO Praises TSMC as ’World-Class Foundry’ Amid $5B Intel Investment

Taiwan Semiconductor Manufacturing Company (TSMC) gained market attention after Nvidia CEO Jensen Huang lauded the chipmaker as a 'world-class foundry' during the unveiling of a $5 billion collaboration with Intel. The partnership aims to develop custom CPUs for data centers and PCs, leveraging Intel's x86 architecture and Nvidia's GPUs via NVLink technology.

Despite Intel's ambitions in the foundry space, both companies emphasized TSMC's irreplaceable role. Huang remarked, 'You can’t overstate the magic that is TSMC,' while Intel CEO Lip-Bu Tan acknowledged TSMC's manufacturing dominance for near-term projects. TSMC shares ROSE 2% on the news, reflecting confidence in sustained demand from both Nvidia and Intel.

Analysts maintain that TSMC retains its leadership in advanced chip production, even as Intel progresses with its 14A and 18A process nodes. Nvidia's ongoing reliance on TSMC underscores the latter's technological edge in high-performance semiconductor fabrication.