OpenAI CEO Sam Altman Advises Tech Giants to Partner with TSMC for Chip Capacity Expansion Instead of Intel

Sam Altman, CEO of OpenAI, has recently shared his thoughts on the semiconductor landscape, specifically regarding whether tech companies should consider alternatives to Taiwan Semiconductor Manufacturing Company (TSMC).Despite the buzz around potentially looking at Intel Foundry as a replacement, Altman expresses a clear preference for continuing with TSMC.

Sam Altman’s Position on Intel Foundry: A Cautious Stance

The notion of Intel as a feasible alternative to TSMC has been gaining attention in the media, particularly following increased collaborations between Intel and the U. S.government. Key industry leaders like Jensen Huang of NVIDIA, AMD’s Lisa Su, and notable figure Jim Keller have been queried about the practicality of partnering with Intel for semiconductor needs. Although many provided measured responses, Altman notably cut through the ambiguity in an interview with Stratechery, where he emphasized his preference for TSMC.

Question: Well, with this, the problem with this is both Nvidia and AMD are sourced at the same place, so there’s another solitary entity in the value chain, which is TSMC. Do you see a need and responsibility/opportunity to expand the market there as well? Is this something where when it comes to the question of Intel.

Altman: I would like TSMC to just build more capacity.

What did you think I was asking, about multi-chip suppliers?

Altman: Do I see a need to get TSMC to expand their rate of investment in more capacity?

While OpenAI has yet to enter the manufacturing arena, the company is reportedly working on a specialized AI chip utilizing TSMC’s cutting-edge 3nm technology. Altman’s insights into the semiconductor supply chain provide significant context for his preference not to pivot toward Intel’s foundry services. Rather than outright dismissing Intel, he indicates a desire for consistency and reliability through a singular partner instead of adopting a dual-sourcing approach.

Intel 18A Process Node Offers 25% Higher Frequency At ISO & 36% Lower Power At Same Frequency Versus Intel 3, Over 30% Density 1 — Intel’s 18A wafer | Image Credits: Intel

Interestingly, similar uncertainty was echoed by AMD’s CEO when questioned about collaborating with Intel as a foundry partner. It appears that industry leaders recognize the strategic importance of U. S.manufacturing, acknowledging that reliance solely on TSMC will not suffice for future growth. The transition of a substantial portion of TSMC’s operations from Taiwan to the U. S.will require considerable time and logistical planning. Thus, the technology sector is keenly assessing the necessity of a secondary chip manufacturing partner, whether that be Intel or Samsung.

At this moment, all eyes are on Intel’s upcoming 18A process node to judge its efficiency and production capabilities. The outcomes of this evaluation will likely play a pivotal role in determining if Intel Foundry can effectively contribute to American manufacturing in the semiconductor space.

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