Taiwan Semiconductor Manufacturing Doubles Production Capacity Amid Nvidia Demand
- Reports indicate that TSMC will double its production capacity next year.
- Nvidia has recently surpassed Apple and Microsoft in market capitalization, which is contributing to the demand for its GPUs.
- The increase in production will primarily support Nvidia's orders and signifies its dominance in the market.
On November 7, 2024, reports emerged indicating a significant shift in the hardware industry driven by Nvidia’s rapidly expanding customer base. Taiwan Semiconductor Manufacturing Company has been recognized as the principal supplier of cutting-edge technology that is in high demand. With Nvidia recently surpassing Apple and Microsoft in market capitalization, the demand for its GPUs is anticipated to grow even more, necessitating the need for increased production. TSMC's CoWoS design is particularly notable, allowing for improved connections and scaling capabilities for GPU systems. Nvidia is expected to account for over 50% of TSMC's increased production capacity, indicating its dominance in the market. As TSMC ramps up production to meet these new demands, it highlights the ongoing transformation within the industry, driven by advancing technologies and the race for innovation among companies like OpenAI.