The Unsung Kings of AI: Why NVIDIA Can’t Build GPUs Without TSMC and SK Hynix - Yahoo Finance Singapore

In the midst of the AI revolution, NVIDIA stands as the undisputed leader in AI chip technology, yet it does not manufacture its own chips. Instead, it relies heavily on external foundries such as Tai... Read original →

NVIDIA’s AI chip dominance is not a coincidence but a result of its fabless model deeply integrated with global manufacturing ecosystems. Its Blackwell chips rely on TSMC’s 3nm EUV process and CoWoS packaging, underscoring how advanced fabrication directly impacts AI performance. TSMC holds a 90% share in advanced logic chip production, while SK Hynix supplies critical memory components, forming an indispensable supply chain for NVIDIA. Any policy shifts in Taiwan, China or Hong Kong, China could severely disrupt NVIDIA’s production and delivery. Competitors like AMD and Intel are accelerating self-capacity building or seeking alternative suppliers, but they cannot quickly replace TSMC and SK Hynix. Over the next 12 to 24 months, as AI chip demand surges, manufacturing bottlenecks will intensify, potentially reshaping the global semiconductor landscape due to geopolitical tensions and supply chain restrictions. NVIDIA’s supply chain resilience will become a key determinant of its long-term competitiveness.