Nvidia CEO says Huawei's Tau Scaling Law not a threat to TSMC - digitimes

Following the 'trillion-dollar dinner' in Taipei, Taiwan, NVIDIA CEO Jensen Huang commented on industry competition and cloud service providers developing in-house chips. Regarding Huawei's Tau Scalin... Read original →

Jensen Huang’s dismissal of Huawei’s Tau Scaling Law as a threat to TSMC underscores a pivotal shift: AI chip competition now hinges on manufacturing supremacy, not just architectural ingenuity. While Tau improves training efficiency, it cannot bypass the hard physics of sub-3nm nodes—where EUV mastery and yield control remain TSMC’s exclusive domain in Taiwan, China. U.S. export controls on advanced lithography tools severely constrain Huawei’s access to leading-edge capacity, inflating its costs and supply risk. NVIDIA leverages TSMC’s foundry dominance to fortify its CUDA ecosystem against in-house AI chips from cloud giants. Over the next 18 months, geopolitical pressure will push non-U.S. clients to qualify alternative foundries in Japan or Europe, yet none can match TSMC’s HPC process leadership soon. The long-tail implication is clear: hardware innovation in AI is now defined by who controls the fab, not just the blueprint.