Finshots Daily The Intel–Nvidia saga
Sep 24, 2025
Dive into the intriguing world of AI chips as Nvidia makes a bold $5 billion investment in a struggling Intel. Explore the tangled history of Intel’s manufacturing missteps and the U.S. government’s backing. Discover why Nvidia is taking a gamble on this partnership amidst geopolitical uncertainties. Learn what this deal aims to achieve with custom CPUs and how it reflects market confidence, despite significant challenges ahead. Unearth the complexity of chip yields and the implications for the future of tech.
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Tea Analogy For Chip Yields
- The host compares premium white tea to high-end processors to explain yield differences in chipmaking.
- Chips from the same wafer get graded by yield, creating cheaper lower-tier models from imperfect dies.
Yield Problems Cripple Intel's Lead
- Intel's manufacturing yields lagged as TSMC improved, eroding Intel's foundry leadership by 2015.
- Poor yields, delays, and outsourcing turned Intel's foundry into a costly weakness over years.
Government Bets On Intel's Strategic Value
- The US government bought a 10% non-voting stake and pledged $8.9 billion, signaling Intel's strategic importance.
- That move indicated Washington wanted to preserve domestic chipmaking capacity despite Intel's struggles.