NVIDIA-TSMC Leaders Meet in Taiwan: Best To Keep Up With Demand
NVIDIA-TSMC leaders meet in Taiwan, Best to keep up with demand. Nvidia, which virtually monopolizes the artificial intelligence (AI) semiconductor market, and the heads of TSMC, the world’s largest semiconductor contract manufacturing company (foundry), met in Taiwan to discuss the shortage of AI semiconductor supply.
According to Bloomberg on the 25th, NVIDIA CEO Jensen Huang, who is visiting Taiwan, met with reporters in Taipei and said that he had dinner with TSMC CEO Wayser on the 24th and discussed TSMC’s role as a consignment manufacturer of NVIDIA semiconductors. It is reported that TSMC founder Maurice Chang was also present.
“The biggest challenge in the AI space is scaling AI capacity,” said CEO Hwang. “We are working very hard to do this, and all of our supply chain partners, including TSMC, are doing their best to keep up with demand.” He added, “This is going to be a great year.”
However, he refrained from commenting on questions about business in China. Before visiting Taiwan, CEO Hwang visited China for the first time in four years. It has not been confirmed whether he held official meetings with other corporate executives or Chinese government officials in China.
NVIDIA is directly affected by the semiconductor conflict between the US and China. The United States has restricted the export of Nvidia’s cutting-edge AI semiconductors to China, and Nvidia is designing AI semiconductors for export to China in compliance with U.S. regulations. CEO Hwang is concerned that the U.S. regulation of semiconductor exports to China will ultimately only encourage China’s technological independence. The one he points out as a potential rival is China’s Huawei.
Meanwhile, NVIDIA and TSMC are considered major beneficiaries of the generative AI boom that began in earnest with the introduction of ChatGPT last year. Numerous AI semiconductors are needed to develop generative AI, and Nvidia’s graphics processing units (GPUs) dominate more than 90% of this market. NVIDIA’s market capitalization more than tripled last year due to a surge in demand for AI semiconductors, and its stock price has jumped another 24% this year.
In the case of TSMC, it virtually monopolizes the consignment production volume of major AI semiconductor design companies such as NVIDIA and AMD. Recently, it was reported that Sam Altman, CEO of OpenAI, which created ChatGPT, contacted TSMC while planning to produce its own AI semiconductors.
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