Foxconn Joins Forces With Kneron In $49 Million Bid To Rival Nvidia's AI Dominance
Portfolio Pulse from Aditi Ganguly
Semiconductor manufacturer Kneron has raised an additional $49 million in a Series B funding round, with contributions from Foxconn Technology Group and Horizon Ventures, among others. The funding will be used to accelerate the commercialization of Kneron's artificial intelligence (AI) chips, which are designed for use in consumer electronics and automobiles. The chips are cheaper than those produced by Nvidia, and are seen as a potential rival to Nvidia's dominance in the AI chip market. Kneron's chips are produced by Taiwan Semiconductor Manufacturing Co. (TSMC), but the company plans to diversify its production to manufacturers in the U.S. and Europe due to rising tensions between the U.S. and China.
October 04, 2023 | 5:26 pm
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NEGATIVE IMPACT
Nvidia's dominance in the AI chip market could be challenged by Kneron's cheaper chips. However, Nvidia's shares have surged more than 230% over the past year, crossing the $1 trillion market cap.
Kneron's cheaper AI chips could potentially disrupt Nvidia's market dominance. This could negatively impact Nvidia's stock in the short term as investors may see Kneron as a viable competitor.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Kneron's chips are produced by Taiwan Semiconductor Manufacturing Co. (TSMC), but the company plans to diversify its production to manufacturers in the U.S. and Europe due to rising tensions between the U.S. and China.
Kneron's decision to diversify its chip production away from TSMC could potentially impact TSMC's revenues in the future. This could negatively impact TSMC's stock in the short term.
CONFIDENCE 70
IMPORTANCE 65
RELEVANCE 60