TSMC Ramps Up NVIDIA Blackwell GPU Orders by 25%

Reports from the supply chain indicate that TSMC is preparing to begin production of NVIDIA's cutting-edge Blackwell architecture GPUs. In response to strong customer demand, NVIDIA has increased its order volume with TSMC by 25%. This highlights a thriving AI market and adds significant momentum to TSMC's performance for the latter half of the year, setting a positive tone for their annual outlook.

TSMC will hold its earnings call this Thursday (18th). Currently in a silent period ahead of the call, TSMC has not commented on this development as of the end of the previous business day.

Industry experts believe that TSMC's production of Blackwell architecture GPUs signals the imminent launch of NVIDIA's most powerful AI server chips, expected to be a key discussion point during TSMC's earnings call. Analysts estimate that the NVIDIA B100 GPU, built on the Blackwell architecture, will have an average selling price (ASP) of $30,000 to $35,000. The GB200 super chip, which integrates the Grace CPU and B200 GPU, could range from $60,000 to $70,000 or higher. These high-value chips are among the most expensive TSMC has ever produced, promising significant contributions to their operations.

The Blackwell GPUs are renowned as the "world's most powerful AI chips," featuring 208 billion transistors and manufactured using TSMC's customized 4nm process. With a doubled mask size, the GPU die achieves a chip-to-chip interconnect of 10TB per second, forming a single, unified GPU. They support AI training and real-time large language model inference, scalable to 10 trillion parameters.

Industry insiders reveal that major global companies, including Amazon, Dell, Google, Meta, and Microsoft, plan to incorporate NVIDIA's Blackwell GPUs into their AI servers, with demand exceeding expectations. Consequently, NVIDIA has increased its order volume with TSMC by approximately 25%.

As NVIDIA scales up the production of Blackwell GPUs, the shipment volumes of end-unit server cabinets, including the GB200 NVL72 and GB200 NVL36, have surged. Initially expected to ship 40,000 units, the volume has increased to 60,000 units, a 50% rise, with the GB200 NVL36 accounting for the majority at 50,000 units.

The industry estimates that the average selling price of the GB200 NVL36 server cabinet is $1.8 million, while the GB200 NVL72 cabinet sells for up to $3 million. The GB200 NVL36 features 36 super chips (GB200), 18 Grace CPUs, and 36 enhanced B200 GPUs. The GB200 NVL72 includes 72 super chips (GB200), 36 Grace CPUs, and 72 B200 GPUs.