Nvidia is pressing for orders, and TSMC is set to make memory chips too!

Nvidia is pressing for orders, and TSMC is set to make memory chips too! The global chip shortage continues to intensify, and TSMC is considering entering the memory chip sector, a move that would profoundly reshape the AI hardware supply chain landscape. According to a report by The Information on Friday, TSMC is evaluating the feasibility of producing advanced memory chips, a move made at Nvidia's request. If the plan materializes, the world's largest contract chipmaker will play a more central role in the AI hardware supply chain, not only providing AI customers such as Nvidia with a clearer chip supply outlook but also potentially easing the current supply tightness in the medium to long term. This round of chip shortage has already put significant pressure on the profit margins of major global equipment manufacturers and has pushed up retail prices of consumer electronics ranging from Apple's iPhone to Sony's PlayStation. Meanwhile, TSMC's share price fell sharply this week along with Taiwan's benchmark Taiex index, which at one point plunged nearly 9% intraday on Friday, entering bear market territory and posting its worst weekly performance since 2001. Nvidia "presses for orders," 3D DRAM becomes the focus According to The Information, the core technology direction TSMC is considering is three-dimensional dynamic random access memory (3D DRAM). This technology route represents the frontier development direction of memory chips and has certain synergy potential with TSMC's existing advanced-process logic chip business. TSMC is already the primary foundry for Nvidia's AI processors. If it further takes on memory chip production, its coverage in the AI hardware supply chain would extend from logic chips to the memory side, thereby helping customers such as Nvidia gain more comprehensive foresight and control over future chip supply. However, TSMC has not yet made any production commitment on this matter. The Information's report also did not disclose a specific timetable, investment scale, or capacity targets. Supply gap persists, multiple players race to expand capacity One of the causes of this round of memory chip shortage is that the debt-driven investment boom in AI infrastructure construction has sharply boosted demand for high-bandwidth memory. Price tracking data for 64GB memory modules on Amazon shows that end-market price pressure has already been reflected. On the supply side, mainland China leader ChangXin Memory Technologies also plans to expand capacity. If TSMC enters the fray, it would introduce a new competitor with strong technological capabilities into the global memory chip market. Worth noting is that on the U.S. political front, after Democrats swept both chambers of Congress this week, AI companies and investors began to worry about whether potential data center construction restrictions could slow the pace of AI investment or even burst the AI bubble. This policy uncertainty adds variables to the demand outlook for the entire AI supply chain. This article is republished from the "Wallstreetcn" APP, author: Bu Shuqing; GMTEight editor: Song Zhiying.