The COVID-19 pandemic is not only affecting our lives but also represents a massive threat for several businesses in the Globe. While the smartphone market is experiencing a massive decline, the component suppliers are also suffering from the low demand. TSMC is one of these companies, but the situation can change now that NVIDIA and AMD have purchased excess capacity at TSMC. Now the company may update its forecasts for this year and post strong results in H1 2020.
Both NVIDIA and AMD are interested in the company’s 7nm supply. According to reports, NVIDIA has been waiting until TSMC’s 7nm node got mature enough for high-performance graphics. Their next chipset will represent a massive upgrade over its predecessor. Apparently, the fact that other companies are starting to look for other processes like the imminent 5nm node, will free the company’s 7nm capacity.
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“A ramp-up in short lead-time orders placed by AMD and Nvidia will allow TSMC to post relatively strong results compared to other foundries in the first half of 2020, according to industry sources.” -Digitimes, Apr. 23, 2020.
Apple is one of the companies that plan to move to 5nm in H2 2020. That will free space for companies like AMD. Worth noting, that AMD was o track to become the TSMC’s largest 7nm customer by the second half of this year. Moreover, TSMC is ramping up its manufacturing capacities.
Meanwhile, NVIDIA is also set to take a lot of TSMC capacity. After all, there are a number of reports indicating that the company is preparing it for its next-generation graphic cards. Moreover, the company wants to introduce a server GPU. The company is reportedly expecting AMD’s reveal of Big Navi series before introducing its RTX 3000 series graphic cards.
According to these reports, we can conclude that both NVIDIA and AMD are quietly building up their stock of CPU and GPU silicon. This way, both companies will be ready to meet demand in full. When the time comes, of course.