NVIDIA rumored to be the first customer for TSMC's most advanced A16 process node in 2026

NVIDIA could very well be the first customer for TSMC's most advanced, next-generation A16 process node in 2026, as it "feels heat from AMD" which is using TSMC's newest nodes for its dominant CPUs coming to market.

In a new report from Taiwanese media outlet Ctee picked up by @DanNystedt on X, we're hearing that NVIDIA could be the first customer for TSMC's next-gen A16 process node in 2H 2026. Most of the new 2nm chips coming off the production lines at TSMC will be for smartphones -- mostly Apple and MediaTek -- but AMD will have the first 2nm AI chip, which has prompted NVIDIA to consider the A16 node with backside power delivery (BSPD).

If NVIDIA does indeed use TSMC's new A16 node, it would be the first time that an AI chip was first to use the very latest TSMC process technology, knocking off smartphones from that claim.

Semiconductor industry analysts have said that although 2nm is expensive -- citing Apple's new 2nm chip wafers for the next-gen iPhone 18 costing close to $27,000 each, and NVIDIA's backside power supply version costing over $30,000 -- that this is a significant increase both in performance and chip density, making it the "key reason' for many customers to "pay for value".