NVIDIA CEO Asserts Exclusive Reliance on TSMC for Chip Production, Rejects Intel and Samsung Foundry Collaboration in the US

NVIDIA’s CEO, Jensen Huang, has emphasized the company’s strong allegiance to TSMC, stating that they currently lack any viable alternatives to the Taiwanese semiconductor leader.

NVIDIA’s Strong Affiliation with TSMC in Advanced Packaging Technology

For several years, NVIDIA has played a pivotal role in TSMC’s operations, particularly following the surge in AI interest. This collaboration has evolved significantly, leading Huang to declare that there are no substitutes for TSMC, particularly in the CoWoS (Chip on Wafer on Substrate) sector. During the GTC Taipei Global Press Conference, Huang outlined a future where NVIDIA’s semiconductor supply chain is entirely dependent on TSMC, disclosing that alternatives from competitors like Samsung Foundry or Intel have proven insufficient.

When questioned about the potential for NVIDIA to seek other semiconductor partners in the U. S., Huang stated:

This is a very advanced packaging technology. I’m sorry we don’t have any other choice at the moment, ”and pointed out that TSMC is still the only partner.

– Taiwan Economic Daily

NVIDIA’s remarkable ability to achieve high performance levels can be attributed, in part, to its implementation of CoWoS technology, which has helped the company overcome the limitations imposed by Moore’s Law. This innovative packaging approach allows for the stacking of several chips, thus enhancing performance in ways that traditional node shrinking cannot achieve. Huang has reiterated that CoWoS has no viable alternatives, reinforcing reports indicating that TSMC remains at the forefront of advanced packaging technology.

While NVIDIA had been in discussion with Samsung and Intel regarding advanced packaging solutions, formal agreements between these parties have yet to materialize. Furthermore, NVIDIA’s partnership with TSMC has allowed it to surpass even Apple in terms of order value with the Taiwanese manufacturer. The company has also been a crucial player in TSMC’s expansion efforts within the United States, serving as a primary customer for the company’s regional initiatives.

Ultimately, the future of NVIDIA’s partnership with TSMC looks promising, as Huang suggests during his Computex keynote remarks. With TSMC’s ongoing expansion into the U. S., NVIDIA can potentially mitigate risks associated with geopolitical tensions.

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