NVIDIA CEO Jensen Huang says TSMC must increase capacity by over 100% in a decade to meet AI chip demand, with $250 billion in global investments planned.
© A. Krivonosov
NVIDIA CEO Jensen Huang has stated that TSMC will need to increase production by more than 100% over the next decade to meet the growing demand for his company's chips. According to Huang, TSMC's current production lines are already under significant pressure.
Huang emphasized that TSMC's manufacturing capacity could grow by over 100% in the coming ten years, representing a massive expansion—the largest infrastructure investment in human history. This doubling is necessary just to keep up with NVIDIA's demand.
TSMC is actively building new facilities and increasing capital expenditures to create what Huang calls the world's largest infrastructure. With artificial intelligence development accelerating, NVIDIA is prepared for long-term growth in AI infrastructure demand. In an interview with local media, Huang noted that expanding TSMC's production capacity will help meet NVIDIA's needs, reflecting confidence in the ongoing AI boom.
TSMC's plans include constructing factories and research centers in regions such as the EU, Japan, and the US, with total investments around $250 billion. Factories in Arizona are already transitioning to 3-nanometer process technology, and the Taiwanese giant plans to implement A16 technology with N-2 design rules in the future. These steps aim to ensure a reliable supply chain and support customers with high computational requirements.
NVIDIA now occupies a significant share of TSMC's production lines, surpassing Apple in order volume within just a few years. Thanks to advance payment arrangements for capacity, new lines will be partially reserved from the start for NVIDIA and other companies using high-performance computing, highlighting the aggressive scale of AI infrastructure development.
For NVIDIA, competition from other manufacturers like ASIC or AMD isn't a critical factor at this stage. Key advantages include earlier access to production lines and strong relationships with suppliers worldwide, allowing the company to confidently expand production and maintain leadership in the high-performance AI chip market.