NVIDIA CEO Jensen Huang has gone ahead and confirmed that the chipmaker’s next-generation GPUs will be fabbed by TSMC. Huang expressed confidence in the Taiwanese foundry’s capabilities stating that it is a world-class company with “immense capacity and incredible agility“. Downplaying fears of a possible Chinese invasion, he made it clear that Team Green “felt perfectly safe” on the island nation.
Jensen also discussed the TSMC Arizona fab, confirming that it will be used to source cutting-edge wafers for next-generation productions. At the same time, he didn’t discount the use of secondary foundries to ensure sufficient diversity and resilience in the supply chain.
NVIDIA went all in with TSMC with its Ada/Hopper lineup of GPUs. The GeForce RTX 40 and H100 chips are all fabbed on a 5nm-class (N4) process node, delivering incredible power efficiency compared to the preceding offerings. Previously, Team Green had split its supply chain between Samsung and TSMC, leveraging the former for GeForce RTX 30 and the latter for the A100 data center GPUs.
One of the primary concerns with TSMC’s monopoly of the supply chain pertains to production capacity. Being the defacto foundry of leading chipmakers, oftentimes there is ample competition to get a chunk of the share, especially with newer nodes.
The NVIDIA CEO admitted that amid the AI boom, the demand for its data center GPUs has gone through the roof. However, he believes that TSMC will rise to the challenge and create enough capacity to meet the demand (and do it soon).
When I was here, in all of our supply chain discussions, we feel perfectly safe. Taiwan is a world-class company with immense capacity and incredible agility. I have every confidence that the demand placed on us, which is extremely high, will be served and will be served soon.
So we have a lot of diversity and resilience designed into our supply chain.
The process of diversifying in different geographies is an excellent strategy by TSMC and so TSMC is now part of Nvidia’s diversity and redundancy strategy.Via Reuters.