AI demand could more than double TSMC capacity: Nvidia CEO

Taipei, Feb. 1 (CNA) Nvidia Corp. CEO Jensen Huang (黃仁勳) said Saturday that Taiwan Semiconductor Manufacturing Co. (TSMC) could expand its production capacity by more than 100 percent over the next decade as surging AI demand strains the global semiconductor supply chain.

Speaking to reporters after hosting a dinner for key Taiwanese suppliers in Taipei, Huang said Nvidia alone would need more than twice as many wafers in the coming years.

Over the next 10 years, TSMC will likely increase its capacity by well over 100 percent, Huang said, praising the foundry for doing an "incredible job" as it ramps up production of Nvidia's latest AI processors.

Huang said Nvidia has entered volume production of its Blackwell platform while simultaneously manufacturing its next-generation Vera Rubin chips, which comprise six advanced designs. TSMC is producing those chips, he said, adding that the company is working "very, very hard" to meet demand.

Asked how many new fabs TSMC might need to build, Huang said the scale of expansion required would be unprecedented, describing it as the largest infrastructure build-out of its kind in human history. Nvidia's demand alone will more than double, he said.

Huang also said Nvidia needs vast amounts of memory to boost AI performance, noting that memory supply constraints have been a real challenge this year. While memory supply is growing by about 100 percent annually, demand is rising even faster, he said, adding that the entire supply chain is under strain.

The dinner, dubbed a "trillion-dollar banquet" by local media for the combined market value of the firms represented, was attended by TSMC Chairman and CEO C.C. Wei (魏哲家) and leaders of major Taiwanese technology groups, including Hon Hai Precision Industry Co. (Foxconn) and Quanta Computer Inc.

Huang arrived in Taiwan on Thursday and is due to depart on Monday.