NVIDIA’s earnings report yesterday showed that the company’s data center revenue increased 14% year over year. Most importantly, investors were heartened by management’s expectations that NVIDIA would expect revenue to surge to $11 billion this quarter. According to Taiwanese sources, NVIDIA TSMC’s urgent orders have helped increase the stress on the lines related to the release of 5nm products.
In the TSMC classification, technical processes are grouped according to their lithographic family membership as follows: 7nm borders 6nm, and 5nm and 4nm are grouped together. According to a Taiwanese publication DigiTimes, NVIDIA’s urgent orders to manufacture 5nm process accelerators have already increased utilization of the TSMC pipeline to almost 100%. As is well known, the Taiwanese contract manufacturer has been suffering from the low demand for 5 nm and 7 nm products since the end of last year. The company was even forced to cut its capital expenditures by $4 billion. According to Taiwanese sources, the hype surrounding AI components has largely solved the problem.
According to DigiTimes, NVIDIA is placing urgent orders for the H100 and A100 accelerators, as well as their China-customized H800 and A800 variants, and now TSMC’s core production facilities are under contract literally until the end of this year. Chinese NVIDIA customers like Baidu are showing strong demand for the H800 and A800 chips available to them after US sanctions. Such a sharp increase in demand for NVIDIA products even surprised TSMC management, which relied more heavily on Apple products as a “catalyst” to overcome the overproduction crisis. It’s possible that TSMC management will revise its revenue guidance for the current year toward improvement at the July investor event.