NVIDIA’s CEO, Jensen Huang, hinted that the company might explore outsourcing AI chip production to firms other than Taiwan’s TSMC. This potential shift suggests that Samsung Electronics could be a candidate for producing NVIDIA’s advanced AI chips, as TSMC and Samsung are the sole manufacturers capable of handling NVIDIA’s cutting-edge technology.
According to Bloomberg, Huang said, “We use them [TSMC]because they’re great, but if necessary, of course, we can always bring up others.”
NVIDIA commands over 80% of the global AI chip market, with its popular Hopper series (H100 and H200) and the forthcoming Blackwell chips currently produced exclusively by TSMC. Despite this, Huang refrained from naming specific alternative suppliers, though Samsung emerged as the likely partner due to its manufacturing capabilities.
Huang emphasized the significant demand for AI chips, noting, “Everyone wants to be first, and everyone wants to be most.” He noted that most of the technology is developed in-house, allowing flexibility in shifting orders to other suppliers if needed. However, he cautioned that such changes could impact chip quality, underscoring a careful approach to potential production adjustments.
NVIDIA’s stock closed at $116.91, up 8.15% from the previous day. This marks a recovery after the drop to $102.83 on September 6, close to the $100 mark. The stock rose for three consecutive days, with the $120 threshold.
Reports from the U.S. internet outlet Semaphore indicate that the U.S. government is considering exporting NVIDIA’s latest AI chips to Saudi Arabia. The Saudi government had positive responses in receiving the H200.
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