AI Demand Could More Than Double TSMC Capacity: Nvidia CEO

Taipei: Nvidia Corp. CEO Jensen Huang said Saturday that Taiwan Semiconductor Manufacturing Co. (TSMC) could expand its production capacity by more than 100 percent over the next decade as surging AI demand strains the global semiconductor supply chain. Speaking to reporters after hosting a dinner for key Taiwanese suppliers in Taipei, Huang said Nvidia alone would need more than twice as many wafers in the coming years. According to Focus Taiwan, over the next 10 years, TSMC will likely increase its capacity by well over 100 percent. Huang praised the foundry for doing an "incredible job" as it ramps up production of Nvidia's latest AI processors. Huang mentioned that Nvidia has entered volume production of its Blackwell platform while simultaneously manufacturing its next-generation Vera Rubin chips, which comprise six advanced designs. TSMC is producing those chips, he said, adding that the company is working "very, very hard" to meet demand. When asked about the number of new fabs TSMC might need to bui ld, Huang stated that the scale of expansion required would be unprecedented, describing it as the largest infrastructure build-out of its kind in human history. Nvidia's demand alone will more than double, he noted. Huang also mentioned that Nvidia needs vast amounts of memory to boost AI performance, highlighting that memory supply constraints have been a challenge this year. While memory supply is growing by about 100 percent annually, demand is rising even faster, he added, emphasizing that the entire supply chain is under strain. The dinner, dubbed a "trillion-dollar banquet" by local media due to the combined market value of the firms represented, was attended by TSMC Chairman and CEO C.C. Wei and leaders of major Taiwanese technology groups, including Hon Hai Precision Industry Co. (Foxconn) and Quanta Computer Inc. Huang arrived in Taiwan on Thursday and is due to depart on Monday.