TSMC is well aware of the growing rivalry between GPU customers and ASICs, but the firm apparently doesn't worry much, as chip orders from both sides come directly to the Taiwan giant.
TSMC Has Managed to Play 'From Both Sides' of the NVIDIA vs ASIC Competition, Being an Important Part of the Supply Chain
The AI industry is experiencing growing compute demands every day, and firms like NVIDIA and AMD are struggling to keep up with the requirements from Big Tech, at least for now. At the same time, companies like Amazon, Google, and OpenAI are pursuing custom AI silicon to ensure they remain less reliant on GPU manufacturers and scale up their AI computing capabilities. There's a thesis that ASICs pose a threat to the dominance of companies like NVIDIA, but for TSMC, this aspect isn't troublesome at all, as the Taiwan giant plays from both ends.
When asked whether it matters to TSMC whether chip demand comes from ASIC or GPU customers, the firm's CEO, C.C. Wei, revealed that both parties are utilizing leading-edge technologies from the Taiwan giant. Here's what he had to say:
Well, Krish, whether with it's GPU or it's an ASIC, it's all using our leading-edge technologies. And from our perspective, we are working with our customers, and we all know that they are going to grow strongly in the next several years. So no differentiation in front of TSMC. We support all kind of types.
- TSMC's Q3 earnings
TSMC's CEO isn't wrong here at all, since every entity involved in the ASIC segment currently goes through the firm for their projects. A prime example of this is how Google's recent TPU lineups, such as Ironwood and Trillium, are being co-developed with Broadcom, which ultimately utilizes TSMC for foundry services. Similarly, Amazon's Trainium and Microsoft's Maia AI chips also use the expertise of the Taiwan giant, employing the N5 (5nm) and below nodes for multiple generations.
Hyperscaler ASICs are predominantly utilizing TSMC's foundry and packaging services, so ultimately, for the chip giant, it doesn't matter how the competition between NVIDIA/AMD and ASIC clients unfolds. This highlights the importance of TSMC in the current AI supply chain, as it serves as a central hub for all partners involved.
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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