Nvidia Eyes Intel’s Packaging for 2028 Chips Intel Poised for Major Win

Intel may be on the verge of securing a major client for its chip manufacturing business. According to recent reports, Nvidia—a leading artificial intelligence (AI) chipmaker—is considering Intel for the production and packaging of its future GPUs.

Reports Suggest Nvidia is Considering Intel for 2028

A report by DigiTimes indicates that Nvidia plans to utilize Intel’s foundry (chip manufacturing) services for some of its manufacturing and advanced packaging needs starting in 2028. The chips in question belong to the Feynman GPU generation, which is expected to launch in 2028. Supply issues are a key factor here; given the supply constraints at TSMC—the industry's leading foundry—Nvidia's move to seek alternative manufacturers is certainly prudent.

Strong ties already exist between Nvidia and Intel. In late 2025, the two companies announced an agreement to jointly develop AI CPUs and GPUs; under this deal, Intel will manufacture specific x86 CPUs and GPU+CPU SoCs for Nvidia, while Nvidia will invest $5 billion in Intel. Google Could Also Become a Customer

Intel may have another major customer in the pipeline as well. Citing The Information, Reuters and The Bull.com have reported that Google has decided to enlist Intel to manufacture over 3 million TPUs by 2028. Estimates from these reports suggest that this order could account for nearly half of Intel's projected production output for that year. These figures are based on press reports and have not been confirmed by the companies involved.

Why packaging matters

The primary focus is on packaging —the stage where the chip is integrated with other components. Nvidia's current accelerators utilize TSMC's CoWoS packaging method, whereas Intel offers a competing technology known as Foveros. A senior Intel Foundry official informed reporters that products designed for CoWoS could be transitioned to Foveros without requiring design modifications. Nvidia CEO Jensen Huang has also acknowledged Intel's multi-technology packaging capabilities—specifically Foveros—recognizing their significant importance in this context.

Still early days, and nothing is certain.

Nvidia's discussions with Intel have not yet been finalized. Citing The Information, Futu News reported that Nvidia's engagement with Intel is currently in the evaluation phase, although the collaboration has progressed beyond initial talks. TSMC serves as Nvidia's manufacturing and packaging partner.

The strength of the trend

Intel's own data highlights just how much the company needs new customers. Foundry revenue reached approximately $4.51 billion, signaling that Intel's contract manufacturing push is beginning to gain traction. Nevertheless, according to a recent market analysis, the consensus among analysts is a cautious "Hold," with an average price target of around $44.

What to watch for:

Upcoming quarters will reveal whether these reports translate into signed deals. A confirmed Nvidia order would serve as a major endorsement for Intel's foundry business, which has struggled with delays and losses in recent years.

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