Since this is a translation of an overseas article, there may be mistranslations.
https://wccftech.com/tsmc-needs-to-double-production-over-the-next-decade-just-to-meet-nvidia-demand/
Jensen Huang, "Emphasizing the future scale of the AI boom, TSMC needs to double its production over the next decade to meet NVIDIA's demand"
TSMC's production lines are already under significant pressure, and according to NVIDIA CEO Jensen Huang, the Taiwanese chip giant will need to more than double its output just to meet NVIDIA's demand.
TSMC's aggressive capital expenditures (CapEx) and fab construction are aimed at building "the world's largest infrastructure"
NVIDIA's AI boom is moving at a rapid pace, and the company is confident about how AI infrastructure demand will evolve over the next few years.
In an interview with local media, Jensen Huang revealed that TSMC plans to more than double its production capacity over the next decade.
Interestingly, this expansion alone is expected to meet NVIDIA's demand, suggesting that Jensen Huang anticipates the AI boom to last much longer. The ongoing fab projects and increased capital expenditures by TSMC are examples of the industry's expectations for future demand.
"TSMC's production capacity will be able to grow by more than 100% in the next decade, which is the largest infrastructure investment in human history and a very significant expansion. Only by doubling its output can it meet NVIDIA's demand." — NVIDIA Jensen Huang (UDN interview)
TSMC's fab expansion plans have grown significantly over the past few quarters, considering geopolitical concerns, leading to large investments in regions such as the EU, Japan, and the US. Specifically, TSMC's plan to build a supply chain within the US will include a $250 billion mega buildout encompassing advanced packaging, semiconductor, and R&D centers.
The key point here is that Grace Blackwell and Vera Rubin alone indicate that NVIDIA occupies a significant portion of TSMC's production lines. This is why 'Team Green (NVIDIA)' has become TSMC's largest customer, surpassing Apple in just a few years. And since TSMC has opened up 'advance payment' options for production capacity, it is certain that a large portion of the future production lines will ultimately be allocated to NVIDIA and other HPC (High-Performance Computing) customers. This further demonstrates how aggressive the current AI infrastructure buildout is.
NVIDIA is overwhelming its competitors in terms of economies of scale, which is why ASIC manufacturers or AMD's competition doesn't pose a significant variable for the company. The second major factor, of course, is that Jensen Huang and Taiwanese suppliers, along with global partners, are able to secure production lines earlier than others due to their close relationships.
▶ Source: https://wccftech.com/tsmc-needs-to-double-production-over-the-next-decade-just-to-meet-nvidia-demand/
