Background on Nvidia and its Relevance
Nvidia, a leading company in the semiconductor industry, recently achieved a historic milestone by becoming the first firm to reach a market valuation of $5 trillion. The company’s success is largely attributed to its cutting-edge graphics processing units (GPUs) and central processing units (CPUs), as well as its innovative networking and switching solutions. Nvidia’s partnership with Taiwan Semiconductor Manufacturing Company (TSMC) has been crucial to its growth and success.
Nvidia’s Strong Demand for Blackwell Chips
Jensen Huang, Nvidia’s CEO, highlighted the strong demand for the company’s latest Blackwell chips during a recent event hosted by TSMC in Hsinchu, Taiwan. Huang explained that Nvidia not only produces GPUs but also CPUs, networks, and switches, all of which are associated with the Blackwell chips.
TSMC’s CEO, C.C. Wei, confirmed that Huang had requested “wafers” from TSMC but kept the exact figures confidential. Wei praised Huang for Nvidia’s success, stating that it wouldn’t have been possible without TSMC’s support.
Addressing Supply Chain Concerns
When questioned about concerns regarding the memory chip shortage, Huang acknowledged that there would be shortages of “various things,” but emphasized the company’s robust growth.
Huang highlighted Nvidia’s strong relationships with memory manufacturers, including SK Hynix, Samsung, and Micron. These companies have significantly increased their production capacity to support Nvidia’s demands.
Huang confirmed that Nvidia has received samples of the most advanced chips from all three memory manufacturers. When asked about potential price increases for memory chips, Huang stated that the decision lies with the manufacturers themselves.
Recent Developments in the Memory Chip Market
SK Hynix, a South Korean memory chip manufacturer, announced last week that it had exhausted its production for the upcoming year and plans to significantly increase investments, anticipating a prolonged “supercycle” of chip demand driven by the rise of artificial intelligence.
Samsung Electronics also reported last week that they are in “close discussions” to supply Nvidia with their next-generation high-bandwidth memory (HBM4) chips.
Blackwell Chip Export Restrictions
Huang clarified that there are currently “no active discussions” regarding the sale of Blackwell chips, Nvidia’s flagship AI processing chip, to China. The Trump administration has previously blocked such transactions, citing concerns that they could bolster China’s military and AI industry.
