On the way to a huge deal with Google and Nvidia? The report that boosted the Intel stock

According to the report – although Nvidia has not signed production orders from Intel factories, it is examining the possibility of producing its next generation based on the “Feynman” chip, so that it will connect four graphics processing cores to one unit – Intel, which has recently greatly improved its chip packaging capabilities, may be a worthy alternative to TSMC in the future. The Feynman processor, the next generation after Robin, is not expected to reach the market before 2028.

Google is at a more advanced stage of working together with Intel: it recently ordered more than 3 million graphics processing units (TPU) for 2028, after thoroughly inspecting Intel’s cradle factories, according to The Information. The TPU chips, Google’s version of Nvidia’s GPU, are currently sold by Google in the market, to giant companies like Apple and Meta, and challenge Nvidia in an industry where the demand for AI processors is endless.

Alternative to TSMC

Intel is becoming an alternative to TSMC today mainly thanks to its packaging technology for chips – not yet a substitute for manufacturing chips from scratch, this is because its advanced manufacturing technology – A18 and A14, which produces circuits with sizes smaller than 2 nanometers – is not yet used by companies outside of Intel. The latter proved that the A18 processors manufactured in the new factory in Arizona can withstand the loads required by laptops and cloud servers. At the same time, TSMC does not meet the load placed on it – both in the production of processors for Nvidia and Apple, and in the production of memory processors that are increasingly required for the operation of artificial intelligence. Last Thursday, TSMC CEO C.C. Wai told investors that the company does not have the ability to satisfy the demand of American companies at the pace of opening its factories in the United States in the coming years.

Chip packaging has become a critical activity for chip factories in the new reality that requires more complex processors for AI operations in server farms. Nvidia’s Blackwell processor, for example, requires a sophisticated packaging of two graphics processing chips with a high-bandwidth memory (HBM) component. Memory component companies are also looking into using Intel factories, such as the Korean memory company SK Hynix which is currently testing Intel’s packaging lines.