Intel (INTC) is integrating its GPU team and Habana team technologies in Falcon Shores, combining programmable architecture and graphics processing cores. This aims to expand software resources and enhance customer retention to counter Nvidia's (NVIDIA) market dominance.

In collaboration with TSMC (TSM), Intel is leveraging TSMC's advanced 3nm process and CoWoS technology, showcasing TSMC's leading edge in advanced packaging technology.

Intel's Gaudi 3 uses TSMC's 5nm process but still lags behind Nvidia's 4nm Blackwell series. The adoption of the 3nm process is expected to help narrow the performance gap with Nvidia.

This move puts additional strain on TSMC's 3nm production capacity. Despite TSMC's claims of doubling capacity, it still struggles to meet market demand.

By integrating GPU and Habana technologies and utilizing TSMC's advanced process, Intel aims to boost the competitiveness of its AI chips and narrow the technology gap with Nvidia.

TSMC's leading position in advanced packaging technology underscores its importance in the global semiconductor supply chain.