On November 8th, Huang Renxun appeared at TSMC’s annual sports meeting and stated that Nvidia’s business is “very strong and getting stronger month after month”. The main goal of Huang Renxun’s visit to Taiwan this time is to ensure the production capacity of advanced processes such as 3 nanometers. TSMC CEO Wei Zhe Jia confirmed that he has received a request to expand production and expects the company to continue achieving record sales growth.
Faced with the sustained strong demand brought by the AI boom, Nvidia, the world’s largest company by market value, is making every effort to ensure its chip supply. Its CEO Huang Renxun went to Taiwan, China, China, to seek more capacity from TSMC, a key partner, highlighting the core position of this Taiwanese chip manufacturer in the current AI supply chain.
According to Bloomberg, on November 8th, Huang Renxun appeared at the TSMC Annual Games in Hsinchu, Taiwan and told reporters that Nvidia’s business is “very strong and getting stronger month after month. He revealed that he has requested more chip supply from TSMC during his visit to Taiwan.
TSMC CEO David Wei also confirmed on the same day that Huang Renxun did indeed request an increase in wafer supply during his trip. Wei Zhejia told employees that TSMC expects to continue achieving record breaking annual sales growth. This series of interactions occurred after the recent pullback of large tech stocks, and the market’s frenzy towards AI was once influenced by doubts about OpenAI’s funding issues and well-known investor Michael Burry’s bearish bet on Nvidia.
Huang Renxun’s public search for more production capacity and high-profile affirmation of the cooperation between the two sides not only conveys extreme confidence in the future demand for AI to the market, but also intuitively reveals the close connection between Nvidia’s growth and TSMC’s production capacity. Huang Renxun bluntly stated at Saturday’s event, “Without TSMC, there would be no NVIDIA today
Capacity bottleneck highlights, consolidating supply chain becomes key
Behind the strong demand is a severe challenge on the supply side. Currently, there is a huge demand in the market for Nvidia products, including Blackwell series chips and rack level configurations, and production capacity has become a key bottleneck in meeting the demand.
TSMC’s advanced manufacturing capabilities are particularly in high demand globally. Wei Zhejia told analysts in October that the company’s production capacity is still “very tight” and is working hard to narrow the gap between supply and demand. In this context, Nvidia is actively striving to become one of TSMC’s main customers for the 3-nanometer process, expected to account for about 30% of the total production.
At the same time, Nvidia’s competitors, including Qualcomm, are also striving to challenge its leadership position in the field of AI accelerators and competing for TSMC’s limited advanced production capacity. This makes Huang Renxun’s move to consolidate his relationship with TSMC particularly important and urgent.
The strategic dependence of ‘without TSMC, there would be no Nvidia’
Huang Renxun’s statement ‘Without TSMC, there would be no Nvidia’ is not an exaggerated formality. In depth analysis of its supply chain reveals that TSMC is at the center of Nvidia’s AI business, both in core semiconductor manufacturing and advanced CoWoS packaging services.
This statement also reflects the evolution of Nvidia’s strategy. In the past, Nvidia was seen as a “late adopter” of cutting-edge chip technology, but now the company is actively competing for the most advanced chip technologies such as A16, which means its dependence on TSMC will only deepen further.
This is Huang Renxun’s fourth visit to Taiwan this year. His frequent meetings and high praise with TSMC executives indicate that the relationship between the two sides is continuously deepening. In the fierce competition of AI, keeping TSMC, the “most sought after company in the industry,” closer to itself has become Nvidia’s core strategy to maintain its market dominance.
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