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Taiwan Semiconductor Manufacturing Company (TSMC) needs to “work very hard” to meet growing demand from leading US chip designer Nvidia, which alone could require TSMC to more than double its capacity in the next decade, Nvidia CEO Jensen Huang has said.
Huang’s remarks followed a high-profile banquet on Saturday evening with executives of key supply chain partners in Taiwan, including TSMC chairman and CEO C C Wei and Foxconn chairman Young Liu, as the Nvidia founder sought to shore up supply amid a production crunch on critical inputs for artificial intelligence infrastructure such as memory chips.
Speaking outside the restaurant, Huang said that TSMC must increase output this year as Nvidia “needs a lot of wafers”.
“TSMC is doing an incredible job and they’re working very, very hard,” he said. “We have a lot of demand this year.”
Nvidia, based in Santa Clara, California, relies on a host of Taiwanese firms to manufacture and scale its cutting-edge computing solutions, including TSMC for advanced packaging and wafers and Foxconn for servers. Last month, TSMC said capital spending could jump up to 37 per cent this year to US$56 billion and increase “significantly” in 2028 and 2029 due to AI demand.
TSMC would be one of the biggest beneficiaries of the AI boom, regardless of whether graphics processing units from the likes of Nvidia and AMD, or custom AI processors such as Google’s tensor processing units saw greater demand in the future, Morgan Stanley said in a research note on Thursday.
