TSMC Wins Big AI Chip Orders from NVIDIA with Sub-7nm Process

According to a report from Electronic Times, industry insiders have revealed that TSMC, with its sub-7nm manufacturing process, has won a significant number of artificial intelligence (AI) chip orders due to the increasing demand for AI applications.

Insiders state that TSMC has witnessed an increase in AI chip orders from NVIDIA over the past few months. Market sources also report that orders for NVIDIA's high-performance GPUs for data centers, namely the A100 and H100, have been on the rise, leading to an increase in their production volume at TSMC.

It is worth mentioning that the NVIDIA H100 GPU adopts TSMC's 4nm process technology, while the A100 utilizes the 7nm process. The increased production volume at TSMC for NVIDIA chips will also help fill the capacity gap caused by MediaTek reducing their orders for these process technologies.

TSMC currently has no significant competitors in the sub-7nm process technology for AI chip manufacturing. Although Intel has re-entered the foundry business, it has not made any meaningful progress yet.

Customers in the AI chip market can choose between TSMC and Samsung for chip fabrication. However, insiders reveal that Samsung lags behind TSMC in terms of process node advancements, and they also cater more to internal chip production.

Insiders state that the demand for NVIDIA's AI chips in China has been strong, with companies like Alibaba Cloud, Baidu AICloud, and Tencent Cloud actively seeking AI chips. Additionally, cloud service providers in other parts of the world also demonstrate a robust demand for NVIDIA's AI chips.