TSMC is drafting plans to build advanced TSMC AI memory chips following a direct request from Nvidia, according to The Next Web. The move by the world's largest chipmaker aims to meet surging hardware demand that has left memory scarce and prices climbing across the tech industry.
Key takeaways
- TSMC is considering manufacturing 3D DRAM memory chips at the request of its largest customer, Nvidia.
- The potential expansion would place TSMC in direct competition with established memory makers Samsung, SK Hynix, and Micron.
- Hsu Kuo-chin, a TSMC vice president overseeing advanced packaging, is leading the ongoing work.
- Industry-wide memory shortages are expected to persist, with Micron projecting the tight supply to last into 2028.
How will TSMC AI memory chips impact the market?
The Next Web reports that TSMC has started drawing up plans for 3D DRAM, which stacks memory cells vertically to squeeze more capacity into a smaller footprint. This effort is led by Hsu Kuo-chin, a TSMC vice president in charge of advanced packaging. To pull this off, the manufacturer could construct brand new factories or buy an existing plant and convert it.
Such a step would expand the company's footprint across the chip supply chain. Entering the DRAM market would pit the foundry directly against Samsung, SK Hynix, and Micron. These firms already dominate memory production, with SK Hynix planning massive spending on new plants while Micron warns that current shortages will linger.
Why memory scarcity drives new chip supply chain strategies
AI data centres continue to soak up available memory, sending costs soaring for hardware makers. Apple already raised Mac and iPad prices due to these expenses, while Elon Musk reportedly plans a massive chip plant to reduce his reliance on Micron. Meanwhile, Nvidia previously asked Samsung, SK Hynix, and Micron to build the base layer of its custom HBM memory using TSMC's 3nm process.
What it means for the semiconductor industry
This potential shift alters the competitive dynamics between traditional foundry services and memory specialists. As big tech customers seek secure supplies and custom architectures, suppliers must adapt to unprecedented hardware demands. Neither TSMC nor Nvidia immediately responded to requests for comment when the initial reports emerged.
Frequently asked questions
TSMC is exploring advanced memory production at the request of its biggest customer, Nvidia, to help address heavy demands from AI data centres.
TSMC has begun drafting plans for 3D DRAM, which stacks memory cells vertically to pack in more capacity.
The work is led by Hsu Kuo-chin, a TSMC vice president who oversees advanced packaging.
Entering the DRAM market would put TSMC up against Samsung, SK Hynix, and Micron.
Micron expects the current memory shortage to last into 2028 as AI data centres continue to soak up supply.
Based on reporting by The Next Web. Read the original article
