Nvidia’s Shift Towards Custom Chips: What You Need to Know

TECH NEWS – Jensen Huang’s company is reportedly looking to focus on custom chips and is trying to attract a lot of Taiwanese engineers.

 

There has been more news about ASICs (custom chips) and Nvidia, as many tech companies want to have their own AI computing arsenal, while the hardware is fine-tuned to their needs. The “greens” are currently making open-architecture AI products (Blackwell, Hopper), but Nvidia is lagging behind in terms of custom solutions tailored to customers’ tastes. The ChinaTimes reported that Nvidia’s planned research center in Taiwan would specialize in ASIC development, and that the company has begun recruiting engineers.

Nvidia would also venture into ASIC production lines in the future, but plans to build a larger staff first. The company wants to hire the best Taiwanese talent so they don’t end up elsewhere. The biggest IC design companies (like MediaTek) want to attract the best people, and that’s why Nvidia has been aggressively hiring. Google, Amazon, and Apple are also looking to develop their own AI chips to be less dependent on Nvidia and have solutions that fit their own workloads.

This has inspired Nvidia to focus on the ASIC segment. Since the company has a good reputation among Taiwanese ASIC manufacturers, it could have good sales in this segment. It has been rumored that the company is developing custom chips in the AI PC segment together with MediaTek, so the AI segment would not be the only one that could benefit from the company’s plans. There is the Tegra system-on-a-chip (SoC) for the Nintendo Switch 2 (T239), so they have experience. Therefore, custom chip manufacturing could be the next big thing, and Nvidia could perhaps prevent other companies from manufacturing their own chips in-house, as they would not get any revenue from it.

So Nvidia is trying to keep up with what is a lot of money. If it wasn’t that kind of industry, they wouldn’t do it.

Source: WCCFTech

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