Like a Mexican restaurant on half-price margarita night, everybody is wondering: where are the chips? Intel and Nvidia are diving further into the semiconductor production game with an eye on the automotive world. On average, 1000+ chips go into constructing a vehicle. Chipmakers and OEMs stand to gain from more investment in the sector.
In the US. Nvidia, the world's more valuable producer of semiconductors, says its deals with auto customers have exploded to $11B. The company expects demand to outpace supply even as production recovers. With existing deals piling up over the next six years, Nvidia targets the auto industry in its growth plans.
Meanwhile, in Europe. Intel is another big hitter in chip production. Last week, they announced a nearly $90B investment in Europe's chip-making industry. The company already has a robust presence in the US. Spreading efforts and resources is part of Intel CEO Pat Gelsinger's goal of geographically diversifying chip manufacturing. A recent statement by Gelsinger likens chip production to oil: saying oil has defined geopolitics for the last five decades, whereas chip factories will play a more critical role in the future.