Nvidia’s $ 10 billion investment to use the 5-nanometer TSMC process

Adequate production capacity is critical to the success of Nvidia’s RTX 4000 GPUs; The chips we expect to hit the market this summer. Gamers were not happy with the release of the RTX 3000 series, but it is said that the company is trying to change this situation for its future GPUs by paying a considerable amount of money.

In November 2021 , it was rumored that Nvidia planned to use the 5-nanometer TSMC process to build its next GeForce RTX 4000 series processors (Ada Lovelace). Nvidia’s series of graphics chips are expected to be much faster and more powerful than the company’s current graphics cards, but the bigger problem is getting enough production capacity.

Nvidia is ready to pay a lot of money to build the capacity to meet the growing demand for more powerful graphics cards, according to a report from HardOrts. In particular, Nvidia has invested $ 10 billion to use part of TSMC’s five-nanometer capacity. Other large companies, such as Apple, AMD and Bitcoin, also use the 5-nanometer TSMC process.

Nvidia has already used Samsung’s eight-nanometer process to build Ampere series GPUs; A process that has gained a negative reputation due to its high energy consumption. The company is also likely to experience relatively poor production efficiencies in the case of RTX 3000 series GPUs, so moving to a smaller processing process could solve the problem. However, the 5-nanometer TSMC nodes are expected to be much more expensive, a feature that could push up the price of Nvidia graphics cards.

With Intel Arc Series GPUs , it makes perfect sense for Nvidia to address the availability of future RTX 4000 GPUs. Although the chip supplier chain is improving, most industry leaders believe that the persistent shortage of chips and components will continue until 2023.