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If this is actual it will be a big deal for Nvidia.
PC Components GPUs
Nvidia reportedly selects Intel Foundry Services for GPU packaging production — could produce over 300,000 H100 GPUs per month
News
By Anton Shilov published about 12 hours ago
TSMC admitted in mid-2023 that demand for its chip-on-wafer-on-substrate (CoWoS) has exceeded its production capacity, and the company vowed to double capacity by the end of 2024. But while TSMC is building up its CoWoS capabilities, Nvidia would like to ship as many of its high-demand AI processors as possible — which is why it's tapping Intel to use its advanced packaging technology (in addition to TSMC's), according to a report from money.UDN.com, citing industrial sources. As with all unconfirmed reports, we'll have to take this with a grain of salt until the companies involved comment. The deal is purportedly for 5,000 wafers per month, and according to quick back-of-the-napkin math, that would equate to 300,000 of Nvidia's H100 chips (assuming perfect yield and that the contract is for H100) per month.
TSMC is projected to remain the main supplier, providing around 90% of Nvidia's advanced packaging capacity. But starting from Q2, Nvidia is also poised to use Intel's capacity for at least some of its products, the report claims. If this information is accurate, adding Intel's capacities will let Nvidia produce more GPUs for AI and HPC workloads, satisfying demand for its existing products quicker. There is a catch, however.
All of Nvidia's current and previous generation products, such as the A100, A800, A30, H100, H800, H200, and GH200 rely on TSMC's CoWoS-S packaging process, which relies on a silicon interposer. The closest advanced packaging technology that Intel has is called Foveros, which also relies on an interposer, albeit a different one (CoWoS-S presumably uses a 65nm interposer, and Foveros uses a 22FFL interposer).
To use Intel's Foveros, Nvidia will need to validate the technology and then qualify actual products, which will likely have slightly different characteristics (because interposers are made on different process technologies and have different bump pitches) than those packaged by TSMC, so the company's partners will probably also need to qualify them before deployment. If this is the case, it will be interesting to see whether Nvidia outsources only select products to Intel, or all of them.
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Intel is expected to join Nvidia's supply chain in the second quarter, producing about 5,000 Foveros wafers monthly (if the report is accurate). This is quite a significant number for Nvidia alone. To put this into context, TSMC could produce as many as 8,000 CoWoS wafers per month as of mid-2023 (which is when Nvidia consumed the lion's share of this capacity) and aimed to increase the output to 11,000 by the end of 2023 and then to around 20,000 by the end of 2024. If Nvidia gets an additional 5,000 advanced packaging wafers per month, this will give it a significant edge over rivals.
Outsourcing some of its advanced packaging to Intel Foundry Service can be seen as a strategic move for Nvidia to diversify its supply chain. As an added bonus, by employing IFS's packaging capacities, Nvidia will also ensure that these capacities cannot used by rivals — allowing Nvidia to solidify its position in the market.
Nice post hopefully ends the previous argument. If this doesn’t get Delfin going nothing will
I read AMD’s earnings transcript and it really makes me feel even better about Nvidia. They did up their 2024 forecast for MI300 from 2 billion to 3.5 billion with the most coming from back half of the year. I think most analysts were expecting 4-8 billion increase in 2024. Lisa Su mentioned customers are wanting to know their future roadmap for AI GPUs. An analyst had a question about the competitions second half B100 offering she side stepped the question. Nvidia’s earnings should be interesting to say the least.
I agree it’s getting ridiculous but you do remind me of the Cape Crusader “Kaboom” sorry last one 👍
Who are you do you change in phone booths?
If they have to get DOE approval they won’t get it, if they start construction or not. The DOE doesn’t have to give them anything. Biden campaigned on ending fossil fuels and the only way to try and keep that is to not approve anything going forward until Election Day. If they don’t need any more approvals there is no reason at this point for any companies to rush to sign with Delfin over the other 4-5 LNG companies listed. Jerry was correct in Delfin’s only chance is November, Trump getting elected. If Biden is elected Delfin is the least of all our worries. The CEO & COO win until then they get to stay on the nipple.
Porty your Lions had a good year it shows how much momentum influences the game
WOW Jerry I’ve read your posts for a lot of years are you okay Ole Bud. Definitely a different side of you I think I’ll just stick to sarcasm
Sorry Chen I got a good chuckle when you said Delfin had the upper hand. They must be using the wrong hand.
Senor will that be public knowledge when and if Delfin files the request for extension?
So do they need to start construction ….. just messing with you C. Someone probably needs to tell Delfin
Here is an excerpt from an article about TSMC packaging.
“It is important to know that TSMC has indeed "reserved" a hefty share of its CoWoS supply for NVIDIA since not only is Team Green an important client, but the Taiwan giant knows who to side with going ahead. Despite harsh US regulations, NVIDIA's dominance in the AI markets doesn't look to stop for now, with firms like Meta rapidly expanding their AI GPU portfolio, with reports of the firm expanding to over 600,000 of NVIDIA's H100s. This shows that Team Green and its AI weapons are indeed to shine in the markets moving ahead, despite setbacks and hurdles faced by the company.
In the midst of it, TSMC could potentially lose a valuable client, at least in the CoWoS race. It was disclosed previously that AMD is looking for other suppliers since the firm believes that TSMC is distracted from catering to the demands of NVIDIA, which is why it has lined up alternative suppliers, with the likes of ASE Investment Holdings, Power Technologies, KYEC Electronics, and Winbond Electronics. The future is indeed interesting and competitive for the AI segment, along with the firms attached to it.”
Yes but lying to FERC that you are going to FID when you get certified doesn’t help matters.
Shorting is a negative function like people that hate others to me there is no purpose for either
To me if Delfin is able to move forward because they already have approvals, this should help get Devon and others off the fence. Venture and others are awaiting approvals which were put on hold. They will have to wait until next January when the new President is sworn into office. There is no guarantee at this point who that will be, so here we go are these ex-Golar people winners or duds.
Jab good post I never said I was going to cash in I’m not stupid in about 2-3 months I’ll have owned this 6 years. Tired of waiting knowing a lot of people here are counting on this to happen and I want it for everyone. I don’t think those 2 clowns running the show have what it takes hopefully I’m wrong won’t be the first time. Sometimes I need to vent I’m done let’s go!!
SOURCE / ECONOMY
Nvidia CEO’s visit to Beijing, Shanghai and Shenzhen shows importance of Chinese market
Localization of chip industry deepens in China for self-reliance
By Chi Jingyi
Published: Jan 21, 2024 09:55 PM
Jensen Huang, president and CEO of Nvidia, dances in a Harbin-style cotton coat at a gala in Shanghai. Photo: yicai.com
Jensen Huang, president and CEO of Nvidia, dances in a Harbin-style cotton coat at a gala in Shanghai. Photo: yicai.com
Videos that circulated on social media showing Jensen Huang, president and CEO of Nvidia, dancing in a Harbin-style cotton coat were proven to have happened at the company's 2024 Beijing New Year Party in the past week, several media outlets reported, citing insiders of Nvidia.
Huang also visited Nvidia's offices in Beijing, Shanghai and Shenzhen in South China's Guangdong Province last week in a low-key manner.
This was Huang's first visit to the Chinese mainland in several years. In June 2023, media reports said that Huang would visit the Chinese mainland and several companies, but the trip did not take place.
During Huang's trip, he did not meet with government officials or release major business announcements. His main purpose was to "have a good time" with Chinese employees, Nvidia confirmed to financial media outlet yicai.com on Sunday.
Huang's "quiet" visit to the mainland could probably be aimed at appeasing clients, as the mainland market is too big to simply cede to a competitor. Meanwhile, customers from the mainland are not satisfied with Nvidia's redesigned chips specifically for the Chinese market due to US chip export controls. Nvidia needs to constantly adjust its strategy to adapt to the changing market environment, industry insiders said.
As the CEO of Nvidia, Huang may want to personally understand the situation of the Chinese market in order to better adjust the company's strategy and products, Zhang Xiaorong, director of the Beijing-based Cutting-Edge Technology Research Institute, told the Global Times on Sunday.
The size of the artificial intelligence (AI) chip market in the mainland is about $7 billion, and Nvidia's market share is more than 90 percent, according to Reuters.
In the past two years, the US government has imposed export controls on Nvidia's high-end AI chips to the Chinese mainland.
According to Nvidia's financial results, revenue in the Chinese market, including the mainland, Hong Kong and Taiwan, accounted for 47 percent of its total during the period from February 2022 to January 2023.
However, for the fourth quarter in 2023, Nvidia said its sales in the Chinese market were expected to have declined significantly.
On January 8, Nvidia unveiled three new desktop graphics chips at the Consumer Electronics Show in Las Vegas, saying that the capabilities of its new products wouldn't trigger rules put in place by the US government to limit the export of AI-related chips to China, according to Bloomberg.
Nvidia plans to begin mass production in the second quarter of 2024 of an AI chip it designed for China to comply with the latest US export rules, Reuters reported, citing people familiar with the matter.
"Huang's trip may have been in response to US government restrictions on Nvidia's exports of chips to China. Nvidia may need to seek cooperation with local Chinese players to ensure that its products have access to the Chinese market," said Zhang.
Forging closer partnerships with Chinese companies will also help Nvidia stay competitive in the global market, as the supply chain in China is becoming more and more complete and mature, Zhang noted.
Huang's trip may have had something to do with Chinese tech giants such as Alibaba and Tencent, Nvidia customers that have been turning to local semiconductor suppliers, a Shenzhen-based industry insider who declined to be identified told the Global Times on Sunday.
"These tech companies are shifting some of their chip orders to local companies to reduce their dependence on US chipmakers. Therefore, Huang's visit to China may be aimed at forging partnerships with these companies to maintain Nvidia's market share in China," the insider said.
More and more Chinese companies are seeking chips from domestic producers, amid tough semiconductor export restrictions to China imposed by the US. The reliance on imported chips was thus largely reduced.
According to statistics from the General Administrative of Customs of China, the country imported 479.5 billion chips in 2023, down 10.8 percent year-on-year, with a value of $349.4 billion, down 15.4 percent from 2022.
"Although the demand for low-end consumer electronics chips weakened in 2023, the US export ban on high-end artificial intelligence chips, which are in greater demand, remained a major cause that led to a sharp decline in China's chip imports," the insider said.
As a result, orders rushed to Chinese foundries in recent months amid tighter US restrictions on China's semiconductor industry. At the same time, Chinese chipmakers were racing to replace foreign-made semiconductor equipment with domestic equipment, with domestic manufacturers winning a far higher proportion of bids in China's wafer foundries in 2023 than in previous years, the insider pointed out.
According to industry association SEMI, Chinese chip manufacturers are forecast to start operations at 18 projects in 2024, with capacity growing from 7.6 million wafers per month in 2023 to 8.6 million wafers per month in 2024.
The Shenzhen-based insider noted that the increased localization of the semiconductor industry in China is natural, as everyone in the industry expects that the US restrictions on technology exports are unlikely to be eased, so it is important to be self-reliant.
Jab that FERC FID situation last year was a real kick in the ying yang for all of us I thought that was the real deal. Hard to get over but I’ll put on a pair of my Grandson’s pampers and get in line.
We don’t know what has been invested there are no numbers, we don’t know the contract language I can guarantee you it is biased towards the customer for them to get out. When they went for 4 years with the FERC begged them to okay by October so they could FID then nothing not even a word from them. For me that was the icing on the cake. Enjoy your posts applaud your vigorous stance but you will be disappointed when June comes and goes. I can’t wait for them to prove me wrong so I can hit the sell button. My opinion only
I agree I’m actually registered independent but the Democratic Party has nothing to offer me. At my age I’m conservative/moderate and the Democratic Party so far to left right whatever you want to call it. I’m all for the younger generation coming to both parties lord knows the age we have running it now or wants to run it is out of touch. I’m sure others feel different that is what makes this Great Country
You know Jerry most companies like Delfin would jump on this opportunity and take the world by the balls. Over 6 years and it is like they look for any excuse to not go forward. Everyone will jump on me but I don’t think Delfin will ever go forward. They just don’t have the horses to drive the buggy. That Venture had 16 contracts. Sell the shell to someone who will use it what do we care who uses it we just want an RM that puts TGLO in the stratosphere. I don’t care if it’s LNG or Popcorn
“Energy startup Venture Global LNG alone has signed 16 contracts since the Ukraine war began, half for volumes out of Calcasieu Pass 2, a plant the company wants to erect next to an existing facility in southern Louisiana. When the facility, known as CP2, enters full commercial operations in 2026, Venture Global expects it to churn out up to 28 million metric tons of LNG yearly.”
I guess the negative solution would be for CP2 not to get FERC approval then sign their contracts.
But really the only thing holding Delfin back is Defin itself.
“Anyone have an idea how it could get fixed?”
Vote Republican!!
Yes I remember that post this definitely is a different year evidently Nvidia didn’t normally partake of the January Effect.
I don’t doubt that with people that know what they’re doing
Yeah I just don’t understand the whole strike price thing when you’re in the money and time to sell. I’ll just keep with owning my shares I know what to do with them. Keep Them!
So Greedy give a non options guy a lesson in options. I notice you always post calls which I know you’re expecting the stock to rise. Just how do you expect to make money on your latest post. Maybe some different scenarios you expect. I’m not playing with you I don’t understand options. Thanks DC
Analysts raising price targets again, TSMC quoting 20% growth in 2024 for AI chips.
Maybe do a once a week post of your trades
Congrats nice win especially with Stafford back Lions are the real thing this year
Don’t know them two although I do know that Sanders guy
There’s some names I haven’t heard in a long time
I’m not smart enough to switch
He needs to get his money back hopefully he opens the roof to get the stench out before it chokes the fans
I’m sure you liked them when Bum Philips and Earl Campbell were there. Thanks for understanding I think Jab’s post to you summed it up. Go TGLO
You know that Jab guy is a pretty smart cookie I think when the Primary comes to Ohio in March I’m going to write his name down. I have it on good authority JJ paid the refs handsomely so today should be a good day. Go TGLO
Yes Roger was a great quarterback I remember Danny White more than Roger, being from Houston you are bucking the trend you’re suppose to dislike Dallas :) Sorry for any insult not intended towards you I guess we all have fears, with Americans in general (not all) is Russia and China. Anyway everyone out there is saying I’m glad that was Dallas and not me :) Howdy Gary Cincinnati Ohio
Bill I believe this is one of those times I take my foot out of my mouth.
Sounds like you are verse in China’s culture. In my working days I worked with a few Chinese mostly in Coating’s they were sharp. I never trusted them probably sounds bad but true. The government didn’t trust them either I guess …… they couldn’t get clearances. You couldn’t pronounce their names so they went by traditional names on their badges like Larry, George, Harry. It cracked me up.
I don’t own smci I follow it a little because I own Nvidia. Try yahoo finance put in ticker then scroll down a ways to “view posts” take with a grain of salt of course