TSMC Turned Down NVIDIA CEO’s Request For Dedicated Packaging Production Line – Report

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According to a report in the Taiwanese press, Taiwan's contract chip manufacturer TSMC turned down NVIDIA CEO Jensen Huang's request to set up a dedicated packaging manufacturing line for NVIDIA's products. Along with semiconductor fabrication, chip packaging has become an equally important part of the industry's rush to ship thousands of. AI chips worldwide. However, unlike fabrication capacity, packaging has struggled to meet the elevated demand for chips, making TSMC, the world's largest contract chip manufacturer, dedicate considerable resources towards it. TSMC's latest earnings call also focused on packaging, with the firm choosing to redefine its market to add the higher revenues from assembling chips in addition to manufacturing them.

NVIDIA CEO's Request Asking TSMC To Establish Dedicated CoWoS Packaging Line Led To Tense Discussions Says Report

According to the details, NVIDIA's CEO Jensen Huang visited TSMC's headquarters earlier this year as part of his visit to Taiwan, where he also met TSMC's founder, Dr. Morris Chang, and the firm's former chairman. According to the sources, his visit to the firm's headquarters was more colorful as it led Huang to request TSMC set up a dedicated packaging line for NVIDIA's GPUs.

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The report shares sparse details of the encounter and highlights that the discussions between Huang and TSMC's managers were quite tense. The latter peppered Huang with a series of questions regarding the request. According to the sources, the talks were unfruitful, and the atmosphere inside the meeting room was tense.

Packaging constraints were among the earliest headwinds to the AI revolution that analysts worried about during the early days of the current hype in 2023. TSMC has struggled to contain the