Nvidia Corp. Chief Executive Officer Jensen Huang has urged Taiwan Semiconductor Manufacturing Co. (TSMC) to increase chip supply, as global demand for artificial intelligence hardware shows no signs of slowing.
The move, first reported by Bloomberg, comes at a time when the semiconductor supply chain remains tight, and competitors are struggling to secure enough production capacity from the world’s largest contract chipmaker.
Speaking to reporters on Saturday in Hsinchu, Taiwan, where he attended TSMC’s annual sports day, Huang described Nvidia’s business as “very strong,” adding that it continues to expand rapidly.
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“The business is very strong, and it’s growing month by month, stronger and stronger,” he said, underscoring that Nvidia’s AI chip orders are surging as companies across the globe race to build the computational infrastructure needed for next-generation AI models.
According to Huang, Nvidia’s three major AI memory suppliers — SK Hynix, Samsung Electronics, and Micron Technology — have all scaled up their production “tremendously” to meet rising orders. These suppliers provide the high-bandwidth memory (HBM) chips critical for Nvidia’s flagship H100 and H200 processors, which power the world’s largest AI systems, including those used by OpenAI, Microsoft, and Amazon Web Services.
Huang’s appeal for more capacity came during a private dinner with TSMC CEO C.C. Wei on Friday, followed by public comments the next day. Wei confirmed that Huang requested more wafers and added that TSMC expects to “continue breaking sales records every year” as demand for high-performance chips intensifies.
The timing of Huang’s visit notably came just as Wall Street turned cautious on the AI rally. Nvidia’s shares slid earlier in the week after reports surfaced that OpenAI’s infrastructure spending and funding commitments might be under review, and hedge fund Scion Asset Management, led by investor Michael Burry, disclosed bearish bets against Nvidia. The broader technology sector, including Apple and Microsoft, also saw declines amid investor fears of overheating valuations.
Still, Nvidia remains the world’s most valuable company, ahead of both Apple and Microsoft, with a market capitalization of about $5 trillion. Its chips dominate roughly 80% of the global market for AI accelerators, used in training and deploying generative AI systems such as ChatGPT, Gemini, and Claude.
Huang credited TSMC for its central role in Nvidia’s rise, calling the company indispensable to the global AI ecosystem. “No TSMC, no Nvidia,” he said, highlighting the deep dependence of U.S. chip design firms on Taiwanese manufacturing. Nvidia relies heavily on TSMC’s 4-nanometer and 3-nanometer processes, which are among the most advanced in the world, to produce its cutting-edge GPUs.
His optimism about AI’s trajectory mirrors that of Qualcomm CEO Cristiano Amon, who told Bloomberg TV earlier in the week that “the world is underestimating how big AI will become.” Amon said demand for AI processing chips is “the strongest technology wave since the smartphone era,” with potential to reshape computing, telecommunications, and industrial automation.
TSMC, meanwhile, faces an ongoing challenge in balancing surging demand from multiple tech giants, including Apple, AMD, Broadcom, and Intel, all of which compete for its limited advanced fabrication capacity. Wei said in October that the company’s capacity remains very tight, and that it is “working hard to narrow the gap between demand and supply.”
The global AI race has created one of the most intense supply crunches in semiconductor history. Data centers worldwide are competing for Nvidia’s GPUs, and companies are now prepaying billions of dollars to secure future deliveries. In the United States and Europe, governments are also racing to build domestic chip plants to reduce dependence on Asia, though Taiwan continues to hold the world’s most critical semiconductor production capabilities.
Analysts say Huang’s visit to Taiwan underscores both Nvidia’s influence and its vulnerability. Without access to sufficient wafer supply from TSMC, Nvidia risks losing ground to rivals like AMD, Intel, and Qualcomm, which are all developing AI chips to capture a slice of the expanding market.
For now, Nvidia’s demand remains unmatched. The company’s planned Blackwell architecture, expected to begin shipping soon, has already drawn huge interest from hyperscalers and sovereign AI projects. TSMC is set to be the exclusive manufacturer of the new chips.
As the AI boom accelerates, both companies are likely to see their fates remain intertwined. Maintaining access to TSMC’s cutting-edge capacity is crucial to sustaining Nvidia’s dominance. On the other hand, Nvidia’s insatiable demand is not just a business win — it’s a signal that the world’s next computing revolution still runs through Taiwan’s foundries.