According to market rumors, the GPU giant NVIDIA has not shifted its chip production to Intel as previously speculated. Jensen Huang, the founder and CEO, confirmed today that the next-generation chips will still be manufactured by TSMC.
During his speech as a guest at COMPUTEX Taipei 2023, where he served as the President of the server giant AMD, Jensen Huang addressed media inquiries regarding the rumors about NVIDIA outsourcing to Intel. He stated that TSMC will continue to handle the production of NVIDIA's next-generation chips because Taiwanese manufacturers still have cost advantages compared to the semiconductor manufacturing environment in the United States.
When asked if he is concerned about Taiwan's dominance in the semiconductor supply chain, Huang emphasized that Taiwan plays a significant role in global technology manufacturing, as many companies rely on Taiwanese components. He believes that every enterprise should consider supply chain resilience and diversity. NVIDIA diversifies its orders by utilizing different processes and fabs at TSMC, including those in the United States.
Regarding the allocation of production capacity between TSMC's Taiwan and US fabs, Huang emphasized that establishing a complete supply chain in the US, including installation, capacity enhancement, and production of advanced process chips, will take more time, potentially decades. In contrast, the operation of Taiwanese fabs has gained NVIDIA's complete trust, offering good yields, cost-effectiveness, and a rich ecosystem that cannot be replicated overnight. Huang also mentioned that the next phase of artificial intelligence development will involve large-scale language training, as well as fields such as physics and biotechnology.