Nvidia CEO warns TSMC must double capacity as AI demand threatens to overwhelm chip supply
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Jensen Huang warns TSMC needs to 'work very hard' to meet AI demand -- Nvidia CEO says its demand alone may force doubling its capacity over the next decade
"TSMC is doing an incredible job and they're working very, very hard" Nvidia CEO Jensen Huang is continuing his tour of Taiwan, and in his latest musings with the press had warned that Taiwan Semiconductor Manufacturing Company (TSMC) has its work cut out to keep up with demand. SCMP reports that
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'People's dad' Jensen Huang praises, pushes Nvidia suppliers on mobbed Taiwan visit
TAIPEI, Feb 1 (Reuters) - Nvidia (NVDA.O), opens new tab CEO Jensen Huang praised and lightly cajoled his major Taiwanese suppliers to produce more to help power strong demand for AI, capping a visit to the island of his birth, where he has been mobbed by adoring fans at every step. Speaking at an
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'TSMC needs to work very hard this year because I need a lot of wafers' says Nvidia CEO Jensen Huang outside a 'trillion-dollar dinner' for top tech manufacturers in Taiwan
Things might be tough for PC gamers this year, as prices continue to rise on everything from memory modules to graphics cards. One person who doesn't appear to be feeling the pinch just yet, though, is Nvidia CEO Jensen Huang, who hosted a so-called "trillion-dollar dinner" in Taiwan this weekend,
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Nvidia's AI Takeover Leaves Apple Fighting For Supply - NVIDIA (NASDAQ:NVDA), Taiwan Semiconductor (NYSE:TSM)
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is accelerating capacity expansion as surging AI demand from Nvidia Corp. (NASDAQ:NVDA) puts new pressure on long-standing partners like Apple Inc. (NASDAQ:AAPL). Nvidia CEO Jensen Huang said Taiwan Semiconductor needs to "work very hard" to
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TSMC Needs to Double Production Over the Next Decade Just to Meet NVIDIA's Demand, Says Jensen Huang, Highlighting the Future Scale of the AI Boom
TSMC's production lines are already under severe pressure, and based on what NVIDIA's CEO is saying, the Taiwan chip giant would need to expand production by more than 100% just to meet NVIDIA's demand alone. NVIDIA's AI bandwagon is moving at a rapid pace, and with that, the company seems
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NVIDIA's 'Trillion-Dollar' Dinner With Taiwanese Partners Shows Us Why Jensen Will Always Remain One Step Ahead in the AI Supply Chain
NVIDIA's CEO recently hosted his iconic 'trillion-dollar' dinner with Taiwan's supply chain executives, underscoring their importance. When it comes to NVIDIA and Taiwan, the relationship between the two hasn't been as close as it is during the AI frenzy, given that it's become necessary for Team
[7]
'People's dad' Jensen Huang praises, pushes Nvidia suppliers on mobbed Taiwan visit
TAIPEI, Feb 1 (Reuters) - Nvidia CEO Jensen Huang praised and lightly cajoled his major Taiwanese suppliers to produce more to help power strong demand for AI, capping a visit to the island of his birth, where he has been mobbed by adoring fans at every step. Speaking at an impromptu press
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Nvidia CEO Jensen Huang told reporters that TSMC needs to work very hard to meet soaring AI demand, warning the chipmaker may need to double production capacity over the next decade just to satisfy Nvidia's requirements alone. Speaking after a trillion-dollar dinner with key suppliers in Taiwan, Huang emphasized the unprecedented scale of capacity expansion needed as AI infrastructure buildout accelerates globally.
Nvidia Pushes TSMC to Dramatically Expand Production Capacity
Nvidia CEO Jensen Huang delivered a stark warning to Taiwan Semiconductor Manufacturing Company during his recent visit to Taiwan, stating that TSMC must "work very hard" to keep pace with exploding AI demand. Speaking to reporters outside a Taipei restaurant following a Saturday evening banquet with key supply chain executives, including TSMC Chairman and CEO C.C. Wei and Foxconn Chairman Young Liu, Huang revealed that Nvidia's requirements alone could force the chipmaker to more than double its manufacturing capacity over the next decade
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. The dinner, dubbed a "trillion-dollar dinner" after the combined market capitalization of attending firms, underscored the critical relationships driving the AI boom2
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Source: Wccftech
"TSMC needs to work very hard this year because I need a lot of wafers," Huang told reporters, laughing but making his point clear. "TSMC is doing an incredible job and they're working very, very hard. We have a lot of demand this year"
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. The Nvidia CEO elaborated that over the next decade, TSMC will likely increase production capacity by much more than 100%, describing it as "a very substantial scale-up"2
.AI Demand Reshapes Semiconductor Supply Chain Dynamics
The pressure on TSMC reflects a fundamental shift in the semiconductor industry as AI-related wafers consume an ever-larger share of advanced-node capacity. Nvidia has now become TSMC's largest customer, overtaking Apple and securing priority access to the foundry's most advanced process nodes, including the cutting-edge A16 technology
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. This displacement has forced Apple to reassess its strategy, with reports indicating the iPhone maker is evaluating whether to move some low-end processor production to alternative suppliers, potentially ending more than a decade of exclusive cooperation with TSMC4
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Source: Benzinga
The scale of capacity expansion required highlights what Jensen Huang characterized as "the largest infrastructure investment in human history"
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. TSMC has already signaled its commitment to meeting this challenge, announcing that capital spending could jump as much as 37% this year to $56 billion, with plans to increase "significantly" in 2028 and 2029 driven by soaring global demand for AI chips2
.Memory Shortage Compounds Supply Chain Challenges
Beyond silicon wafers, Huang expressed concern about memory chips, which support AI workloads amid a production crunch that has affected consumer hardware prices. "We need a lot of memory this year," he stated. "I think that the entire supply chain is challenging this year because demand is so much more"
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. The memory shortage, driven by AI servers consuming vast quantities of DRAM modules, has created what some call a "RAMpocalypse" that leaves PC gamers and other consumers facing higher prices and limited availability3
.Related Stories
Global Expansion Plans Accelerate Amid Geopolitical Pressures
TSMC's capacity expansion extends well beyond Taiwan as geopolitical concerns drive diversification. The company is investing $165 billion in US chip manufacturing facilities, with plans for four new advanced integrated circuit packaging plants in Taiwan
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. Equipment for TSMC's Fab 21 phase 2 site in Arizona will reportedly start arriving next summer, with mass production now targeted for 2027, ahead of the original 2028 schedule1
. The Arizona plants are currently shifting to 3nm production and plan to advance to A16 technology5
.Huang reassured Taiwan that plans to move 40% of chipmaking capacity to America represent entirely new capacity rather than relocation, preserving the island's "silicon shield"
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. During his visit, the Nvidia CEO, referred to by local media as "the people's dad," was mobbed by adoring fans at every appearance, reflecting his celebrity status in Taiwan where he was born before emigrating to the United States as a child2
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Source: Tom's Hardware
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