'Very strong demand': Jensen Huang on Blackwell chips
What's the story
NVIDIA's CEO Jensen Huang has announced a "very strong demand" for the company's latest Blackwell chips. The state-of-the-art processors are specifically designed to power the ongoing artificial intelligence (AI) revolution. Huang made these remarks during a Taiwan Semiconductor Manufacturing Company (TSMC) event in Hsinchu, Taiwan. He also highlighted that this surging demand is increasing NVIDIA's need for wafers from TSMC, its long-time manufacturing partner.
Partnership praise
TSMC's role in NVIDIA's success
Huang praised TSMC for its unwavering support in wafer production, saying, "TSMC is doing a very good job supporting us on wafers." He emphasized that NVIDIA's success would not have been possible without the Taiwanese semiconductor giant. This comes as Huang makes his fourth public visit to Taiwan this year, while there are growing concerns over market share loss in China due to tariff tensions between Washington and Beijing.
Chip complexity
Complexity of Blackwell chips
Huang also detailed the complexity of Blackwell chips, saying they need a variety of components. "NVIDIA builds the GPU (graphics processing units), but we also build the CPU (central processing units), the networking, the switches," he told reporters at the TSMC event. This statement highlights NVIDIA's comprehensive role in chip development and manufacturing.
Wafer request
TSMC CEO confirms wafer request
TSMC's CEO C.C. Wei confirmed Huang's request for wafers, but the exact number remains confidential. Wafers are thin, round disks that serve as a base for microscopic electronic circuits found in chips. This further emphasizes NVIDIA's growing demand and reliance on TSMC as it continues to expand its operations and meet market needs.
Memory supply
Memory shortages and price hikes
When asked about potential memory shortages, Huang assured that NVIDIA is well-supported. "We have three very, very good memory makers - SK Hynix, Samsung, Micron - are all incredibly good memory makers," he said. He also confirmed that NVIDIA has received the most advanced chip samples from these three companies. However, when asked about possible price hikes on these chips, he left it up to the manufacturers to decide their business strategies.
Production boost
SK Hynix and Samsung's AI chip production ramp-up
Last week, SK Hynix announced that it has sold out all its chip production for next year. The company plans to increase investments significantly, anticipating an extended chip "super cycle" fueled by the AI boom. Meanwhile, Samsung Electronics revealed that it is in "close discussion" to supply its next-generation high-bandwidth memory chips (HBM4) to NVIDIA.
Market restrictions
Export restrictions to China impact NVIDIA's sales
Despite the massive global demand, NVIDIA cannot sell its most advanced AI chips, including the Blackwell. This is due to restrictions imposed by the Trump administration over fears that such sales could benefit China's military and its AI industry. In response, the Chinese government issued guidance requiring state-funded new data center projects to use domestic AI chips.