NVIDIA CEO Jensen Huang Secures 50% Production Boost from TSMC Amid Soaring AI Chip Demand

NVIDIA Secures Massive Production Increase from TSMC

NVIDIA CEO Jensen Huang has successfully negotiated a substantial 50% increase in Taiwan Semiconductor Manufacturing Company's (TSMC) 3nm chip production capacity during his latest visit to Taiwan 1

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. The expansion will boost TSMC's monthly wafer production from the current 100,000-110,000 wafers to 160,000 wafers per month at its Southern Taiwan Science Park 18B fabrication facility, with NVIDIA requiring an additional 35,000 wafers monthly to meet surging demand for its Blackwell AI GPUs 1

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Strengthening Strategic Partnership Through Personal Diplomacy

Huang's fourth visit to Taiwan this year has been marked by a blend of business negotiations and relationship-building activities 2

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. The NVIDIA CEO met with TSMC CEO CC Wei over a hotpot dinner in Taipei, with videos of their meeting quickly going viral on social media 2

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. Huang also attended TSMC's annual sports day and visited the company's new Tainan 3nm semiconductor fabrication facility, where he met with TSMC founder Morris Chang 1

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"No TSMC, No NVIDIA" Declaration

During his Taiwan visit, Huang made a striking declaration about TSMC's importance to NVIDIA's success, stating "without TSMC, there would be no NVIDIA today" 1

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. This statement underscores the critical dependency NVIDIA has developed on TSMC's advanced semiconductor manufacturing capabilities, particularly for its AI chip production 3

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. When pressed by local media about the specifics of their discussions, TSMC CEO Wei confirmed that Huang "wants more chips" but kept the exact details confidential 2

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Preparing for Next-Generation AI Platforms

The production capacity expansion is being driven by demand for both current and future NVIDIA products. The company's Blackwell Ultra GB300 AI chips and the upcoming Vera Rubin AI platform are both manufactured using TSMC's N3P process node 1

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. NVIDIA is expected to secure approximately 30% of TSMC's total 3nm production capacity, highlighting the scale of the AI chip demand and NVIDIA's dominant position in the market 3

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Market Context and Future Outlook

This production increase comes at a time when TSMC's 3nm and 5nm production capacity is expected to be "100% booked out" in 2026, indicating the intense competition for advanced semiconductor manufacturing 1

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. TSMC CEO Wei expressed confidence that the company will continue setting revenue and profit records, stating that "not just this year, every year from now will set a new record" 2

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. The Blackwell series remains central to NVIDIA's growth strategy, with analysts estimating it could generate $5 billion to $6 billion in revenue next quarter 2

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