Nvidia vs. TSMC: The Semiconductor Standoff Fueled by AI Demand

Nvidia’s Growing Demand Outpaces Supply

CEO of Nvidia, Jensen Huang, claims that TSMC cannot satisfy the immense demand from his company in the near future. Due to the AI boom, the demand for accelerators is so high that, according to Huang, TSMC would need to double its production capacity to meet it. As TSMC is already the largest semiconductor producer, this feat would require around 10 years.

TSMC’s Massive Expansion Plans

Created by Grok, TSMC’s production capacity could grow by more than 100% over the next decade, representing a significant expansion of operations, the largest infrastructure investment in human history, and it would need to double solely to meet Nvidia’s demand. Of course, all of this is valid if the market continues to grow, and the bubble doesn’t burst due to these hundreds of billions of dollars of investments not being recouped through receiving corresponding profits from users.