NVIDIA is witnessing explosive demand for Blackwell AI products as the firm places additional orders at TSMC & new Taiwanese suppliers.
NVIDIA Looks To Balance AI Supply Chain Through Extensive Network of Suppliers, Plans To Ship Out Millions of Blackwell Products
Team Green is having trouble balancing the supply chain, as reports suggest that NVIDIA's Blackwell product is seeing massive interest right now. Major tech firms are battling each other to acquire newer architecture, and in light of that, NVIDIA has now contacted its suppliers, demanding that they increase production capacities. The manufacturer is also looking to expand to newer suppliers, with the top ones being Taiwanese firms. KYEC and ASE Technology are currently in are those companies that are under the testing phase, after which mass production is expected to be handed over to the suppliers.
KYEC and ASE Technology are said to be witnessing gigantic order placements from NVIDIA, with both companies' order volumes doubling in quarters. Team Green has also advised TSMC to scale up its production facilities. While the Taiwan giant has made several efforts to expand its chip packaging supply, it is not sufficient for NVIDIA.
To add up to the problems, it is reported that the manufacturing complexity of Blackwell products is much higher compared to the Hopper generation, which is a "bonus" for the manufacturers considering the drastic rise in Average Selling Prices (ASPs) and gross margins. TrendForce and other market researchers estimate that Team Green is expected to ship out millions of Blackwell products by 2025. Hence, the extent of the demands is massive, much larger than what we saw with the Hopper products.
Well, Taiwan has become an integral part of NVIDIA's vision for the future, as the AI giant now looks to add more companies, giving them crucial responsibility. Both KYEC and ASE Technology have reacted positively to this development, so Team Green's supply chain is more diverse than ever. It will be interesting to see what sort of impact the market will witness once Blackwell AI GPUs and servers enter the mainstream sectors.
News Source: Taiwan Economic Daily
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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