NVIDIA's unstoppable AI chip demand has TSMC boosting 3nm production by a huge 50%

NVIDIA CEO Jensen Huang has asked TSMC to increase its 3nm production by 50% as demand for the company's Blackwell AI chips continues to swell, as the groundwork is being laid down for its next-gen Rubin AI GPUs.

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Jensen is in Taiwan right now, where he was hanging out with TSMC founder Morris Chang, where he praised the country and TSMC, saying: "without TSMC, there would be no NVIDIA today". Jensen has visited TSMC's new Tainan 3nm semiconductor fab, while also visiting Hsinchu to participate in TSMC's annual sports day.

TSMC has fresh new additional orders for NVIDIA AI chips fabbed on its 3nm process, which will require TSMC to expand the production capacity of its 3nm process fabbed at its Southern Taiwan Science Park 18B fab, increasing from the current 100,000 to 110,000 wafers per month, to 160,000 wafers per month. This is a huge increase of 45% to 50%, with NVIDIA's additional monthly wafer requirements at around 35,000 wafers.

NVIDIA will need as much of TSMC's 3nm production capacity, as it wasn't long ago we were reporting that TSMC's 3nm and 5nm production was expected to be "100% booked out" in 2026, with more on that story in the links above.

Additionally, NVIDIA's new Blackwell Ultra GB300 AI chips and new Vera Rubin AI platform are both fabbed on TSMC's N3P process node, so things are looking super-busy for both companies as we flow into 2026.