Acer chief warns Nvidia-Intel tie-up threatens to complicate PC supply chains
Acer's chief executive has warned that Nvidia's recent investment in Intel and their collaboration on x86 processors could significantly disrupt supply chain management for personal computer manufacturers, adding a new layer of complexity to an already challenging procurement environment.
Growing supplier fragmentation
Jason Chen, chairman and chief executive of Acer, told the company's annual Long Time Smile Awards that the industry already struggles to manage multiple generations of x86 chips from Intel and AMD. The potential entry of Nvidia as a third x86 supplier raises questions about whether the processor landscape will remain a duopoly, he said, according to reports from DigiTimes Asia.
"There are already multiple generations of x86 processors in coexistence. If additional vendors enter the space, and with multiple processor generations, industry changes will be substantial," Chen said. "For PC brands, procurement and inventory management will become more challenging."
Shifting vendor dynamics
Chen highlighted the operational difficulties PC manufacturers face in targeting different market segments with appropriate, cost-effective products across varying processor generations from two vendors. He noted that while Intel previously dominated the space, Nvidia has gained significant influence, forcing brand companies to adapt to a transformed ecosystem.
The traditional model of separate CPU and graphics processing unit vendors is shifting towards collaboration, Chen observed, requiring close monitoring of how supply arrangements evolve under this new paradigm.
Broader supply pressures
Beyond processor complexity, Chen highlighted several pressing supply chain concerns. Memory prices have risen sharply, creating a demand-supply imbalance that could reverse if Chinese manufacturers increase shipment volumes. CPU shortages remain an equally pressing issue, though Chen acknowledged that chip vendors are working to address constraints.
On market conditions, Chen noted that consumer confidence appears to have recovered from earlier shocks related to US reciprocal tariffs, with expectations that the second half of 2025 will outperform the first. However, he cautioned that price increases and component shortages require continued vigilance.
Chen said rising costs would not automatically translate to higher end-product pricing, citing three determining factors: supply and demand dynamics, product differentiation, and individual customer arrangements.