Nvidia CEO Affirms Strong Alliance with TSMC, Ensuring Solid Tech Collaboration

nVidia GTC

At the GPU Technology Conference, Nvidia showcased its rapidly growing AI empire, with the support of Taiwanese manufacturers like TSMC and major server ODMs.

Nvidia's strong partnerships with Taiwanese manufacturers like TSMC and major server ODMs have contributed to the company's rapid growth in the AI market.
TSMC's ramping up of its CoWoS capacity and plans to build two advanced packaging fabs in Taiwan will help address the shortage of Nvidia's AI chips and cater to the needs of other AI chip customers.
Nvidia's approach to its AI business, inspired by TSMC's successful business model, has solidified its position as a dominant player in the AI realm and has benefited Taiwanese firms in the server supply chain.

nVidia’s presence at the ongoing GTC (GPU Technology Conference) has shed light on the company’s rapidly growing AI empire, thanks to its strong partnerships with Taiwanese manufacturers like TSMC and major server ODMs. During his keynote address on March 18, Nvidia CEO Jensen Huang emphasized the company’s collaborations with TSMC and the broader supply chain in Taiwan. In a subsequent press briefing, Huang expressed Nvidia’s high demand for TSMC’s advanced packaging services, particularly CoWoS (Chip-on-Wafer-on-Substrate). He also expressed confidence in TSMC’s capacity to meet this demand, signaling a promising future for their partnership.

One of the key factors contributing to the shortage of Nvidia’s AI chips has been the insufficient CoWoS support from TSMC. To address this issue and cater to the needs of Nvidia and other AI chip customers, TSMC is ramping up its CoWoS capacity and has recently announced plans to build two advanced packaging fabs in Chiayi, southern Taiwan.

Nvidia’s approach to its AI business seems to have been inspired by TSMC’s successful business model. Huang acknowledged that Nvidia’s role in the AI industry mirrors TSMC’s role as a chip manufacturer for Nvidia. In fact, Nvidia is positioning itself as an AI Foundry, similar to how TSMC operates as a dedicated foundry for various semiconductor companies.

In November 2023, Nvidia introduced its AI foundry service, which allows for customized generative AI applications tailored to the specific needs of enterprises and startups deploying on Microsoft Azure. This move has solidified Nvidia’s position as a dominant player in the AI realm, leveraging its expertise in CUDA and GPU platforms. Taiwanese firms have played a crucial role in supporting Nvidia’s rise to prominence in the AI market, while also reaping significant benefits from their partnership.

Looking ahead, Nvidia is expected to unveil upgraded versions of its H100 and GH100 chips in the second quarter of 2024, namely the H200 and GH200. Additionally, Nvidia has introduced the B100/B200 and GB200 on its new Blackwell platform at GTC. The launch of these new chip products will not only benefit TSMC and equipment suppliers but also the broader server supply chain.

It’s worth noting that TSMC has been the exclusive manufacturer of Nvidia’s AI GPUs, while Samsung was responsible for producing Nvidia’s RTX 30 series for the gaming market using the 8 nm node. However, due to yield and performance issues at Samsung, Nvidia has decided to shift production of its next-generation RTX 40 series entirely to TSMC’s 4 nm node. The upcoming RTX 50 series will also be manufactured by TSMC, utilizing their 3/4 nm processes. Looking further ahead, Nvidia’s next-generation AI GPUs, set to debut in 2025, are expected to embrace TSMC’s 3 nm processes.

Given the high costs associated with switching chipmaking partners, Nvidia plans to continue relying on TSMC’s services, including their 2 nm, A14, and A10 technologies, in the foreseeable future, unless unforeseen circumstances arise. Nvidia’s server partners in Taiwan, including ASRockRack, Asustek, Foxconn, Gigabyte, Inventec, Pegatron, Quanta Cloud Technology (GCT), Wistron, and Wiwynn, will supply servers running on the Blackwell platform. This collaborative effort between Nvidia and its Taiwanese partners further reinforces the company’s position as a leading force in the AI industry.

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Background Information

About Foxconn: Foxconn, officially known as Hon Hai Precision Industry Co., Ltd., is a global technology manufacturing company. With a rich history dating back to 1974, Foxconn has played a pivotal role in revolutionizing the electronics industry. Foxconn is mainly known for its role as a important contract electronics manufacturer. The company specializes in assembling a wide variety of electronic products, including smartphones, tablets, computers, televisions, gaming consoles, and other consumer electronics on behalf of some of the world's leading technology brands

About Gigabyte: Gigabyte Technology, a important player in the computer hardware industry, has established itself as a leading provider of innovative solutions and products catering to the ever-evolving needs of modern computing. With a strong emphasis on quality, performance, and technology, Gigabyte has gained recognition for its wide array of computer products. These encompass motherboards, graphics cards, laptops, desktop PCs, monitors, and other components that are integral to building high-performance systems. for their reliability and advanced features, Gigabyte's motherboards and graphics cards have become staples in the gaming and enthusiast communities, delivering the power and capabilities required for immersive gaming experiences and resource-intensive applications

About Microsoft: Microsoft, founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington, USA, is a technology giant known for its wide range of software products, including the Windows operating system, Office productivity suite, and cloud services like Azure. Microsoft also manufactures hardware, such as the Surface line of laptops and tablets, Xbox gaming consoles, and accessories.

About nVidia: NVIDIA has firmly established itself as a leader in the realm of client computing, continuously pushing the boundaries of innovation in graphics and AI technologies. With a deep commitment to enhancing user experiences, NVIDIA's client computing business focuses on delivering solutions that power everything from gaming and creative workloads to enterprise applications. for its GeForce graphics cards, the company has redefined high-performance gaming, setting industry standards for realistic visuals, fluid frame rates, and immersive experiences. Complementing its gaming expertise, NVIDIA's Quadro and NVIDIA RTX graphics cards cater to professionals in design, content creation, and scientific fields, enabling real-time ray tracing and AI-driven workflows that elevate productivity and creativity to unprecedented heights. By seamlessly integrating graphics, AI, and software, NVIDIA continues to shape the landscape of client computing, fostering innovation and immersive interactions in a rapidly evolving digital world.

About Samsung: Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.

About TSMC: TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.

Event Info

About nVidia GTC: The NVIDIA GTC event is a premier gathering for innovators, researchers, and industry leaders to explore the latest advancements in GPU computing and artificial intelligence. Through presentations, workshops, and demonstrations, GTC showcases breakthroughs in deep learning, autonomous vehicles, healthcare, and scientific research, driving forward the evolution of technology and its impact on society.

Technology Explained

CoWoS: CoWoS, or Chip-on-Wafer-on-Substrate, is a recent advancement in chip packaging that allows for more powerful processors in a compact size. This technology stacks multiple chips on a silicon interposer, enabling denser connections and improved performance. Developed for high-performance computing, CoWoS promises faster processing, lower power consumption, and the ability to pack more processing power into smaller devices.

Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.

Substrate: The technology substrate is a layer of material that provides a foundation for the components of a computer system. It is the foundation upon which the components of a computer system are built. It is usually made of a material such as silicon, which is a semiconductor material. The technology substrate is used to create the circuits and pathways that allow the components of a computer system to communicate with each other. It is also used to create the physical structure of the computer system, such as the motherboard, memory, and other components. The technology substrate is essential for the functioning of a computer system, as it provides the necessary pathways for the components to communicate with each other. It is also used to create the physical structure of the computer system, such as the motherboard, memory, and other components.