NVIDIA CFO Says 'Would Love A Third' Foundry Partner Apart From TSMC And Samsung
Portfolio Pulse from Benzinga Newsdesk
At the UBS Technology Conference, NVIDIA's CFO expressed interest in adding a third foundry partner to diversify beyond its current reliance on TSMC and Samsung for chip production.
November 28, 2023 | 7:08 pm
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POSITIVE IMPACT
NVIDIA's consideration of a third foundry partner could indicate a strategic move to mitigate supply chain risks and potentially improve production capabilities.
NVIDIA's search for an additional foundry partner suggests proactive steps to secure chip production against industry-wide supply constraints. This could reassure investors about the company's commitment to maintaining supply chain stability and possibly lead to improved production efficiency.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
NVIDIA's interest in a third foundry partner could impact Samsung's business with NVIDIA if the diversification leads to a redistribution of orders.
While NVIDIA's potential addition of a third foundry partner is not a direct indication of reduced business for Samsung, it could lead to a more competitive environment for Samsung's foundry services, potentially affecting the volume of orders from NVIDIA.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
NVIDIA's statement about seeking another foundry partner may introduce new competitive dynamics for TSMC, possibly affecting its business relationship with NVIDIA.
The announcement by NVIDIA's CFO could signal a future shift in the company's sourcing strategy, which may lead to a more distributed order allocation among foundries, potentially impacting TSMC's volume of business with NVIDIA.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60