Because TSMC cannot cover all the demand.
NVIDIA heavily depends on TSMC’s technical capabilities for packaging chips using the CoWoS method in its supply of accelerators for artificial intelligence systems, and all the latter’s efforts to expand them cannot yet cover demand. As noted by Commercial Timesin this situation NVIDIA preferred to ask Intel to adapt the technological processes for chip packaging for its needs. According to experts, there is not much difference between the chip packaging methods offered by Intel and TSMC.
Image source: NVIDIA
Intel’s chip packaging capabilities are attracting new customers. Microsoft is rumored to be willing to pay it $15 billion for a long-term contract to make chips for computing accelerators using Intel’s 18A technology. Microsoft, Cisco, Qualcomm, and Amazon are interested in Intel’s chip packaging services, so it wouldn’t be too hard to see NVIDIA among them if the negotiations are successful.
