TSMC needs to double production over the next 10 years to keep up with NVIDIA demand

NVIDIA CEO Jensen Huang says TSMC needs to double production over the next 10 years... just to meet current NVIDIA demand, as AI boom isn't slowing down.

TSMC needs to double production over the next 10 years to keep up with NVIDIA demand
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Gaming Editor
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TL;DR: TSMC plans to double semiconductor production over the next decade to support NVIDIA's growing AI chip demand and global infrastructure expansion. NVIDIA, TSMC's largest customer, drives significant fab investments, including advanced 3nm and A16 process nodes, while TSMC expands manufacturing across the US, EU, and Japan.

TSMC is pumping out as much silicon as it can for virtually every big tech company, but NVIDIA CEO Jensen Huang is in Taiwan right now handling business, where he spoke with local media saying TSMC needs to double production over the next 10 years for the "world's largest infrastructure" buildout.

TSMC needs to double production over the next 10 years to keep up with NVIDIA demand 32
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Jensen told local Taiwanese media: "TSMC's production capacity may grow by more than 100% in the next ten years, which is a very significant scale expansion, the largest infrastructure investment in human history, and it will have to double just to meet NVIDIA's demand".

TSMC has been expanding its semiconductor fabs for a while now, as it has factored in geopolitical issues, which has seen TSMC pump serious money into regions including the EU, Japan, and the US. TSMC also plans to build out a supply chain in the US with a massive $250 billion mega-buildout which includes advanced packaging, semiconductors, and R&D centers.

TSMC Arizona is currently in the process of shifting production to 3nm, with TSMC also planning its move to the next-gen A16 (1.6nm) process node, while being mindful of its current "N-2" policies.

NVIDIA takes up a bunch of TSMC's semiconductor production lines with its Grace Blackwell and upcoming Vera Rubin AI series on its own, as well as being TSMC's first customer for its A16 process node, overtaking Apple as TSMC's biggest customer.

TSMC has also opened up the options of capacity "prepayments" that will see future production lines surely being booked up very early, with huge shares pushed towards NVIDIA and other HPC customers.