NVIDIA vs AMD: Who’s Really Winning Thanks to TSMC?

Login to Continue Learning

TSMC is expected to become the central player in the AI supply chain, with every manufacturer relying on it. The demand for AI chips shows no signs of slowing down, which will lead to massive revenue figures for AMD and NVIDIA in upcoming months. More importantly, TSMC’s role in the supply chain cannot be overstated. Both companies have a diverse network of suppliers, but they all converge at TSMC. The AI industry is forecasted to see hundreds of billions in chip orders, with TSMC holding significant importance, supplying high-end nodes for accelerators and advanced packaging facilities.

TSMC stands out as the only foundry trusted by the industry due to its cutting-edge technology. This trust has translated into impressive financial results; the company reported a 61% year-over-year increase in second-quarter profits, hitting record highs and surpassing expectations. Since the start of the AI boom, TSMC has been a primary driver, collaborating with NVIDIA and AMD to supply high-end equipment.

NVIDIA’s next-gen products like Vera Rubin will use TSMC’s 3nm process, along with Feynman architecture rumored to feature N2 technology. Similarly, AMD plans to revolve its next-gen Instinct AI lineup around TSMC’s processes, including the Instinct MI350X and future MI400 series. Intel, despite having its own fab, will still source chips from TSMC, indicating the company’s dominance is here to stay.

TSMC has rapidly expanded its presence in America due to geopolitical tensions. The firm plans to transfer 2nm production to Arizona by the end of 2026. This expansion is remarkable considering that TSMC had “zero” production in the US just a few years ago, highlighting the rapid milestones it has achieved.

In a unique start to his ruling against President Donald Trump’s administration on September 30, U.S. District Court Judge William Young included a scanned handwritten note sent to his office. The note read: “Trump has pardons and tanks – what do you have?” At the top of Young’s opinion in AAUP v. Rubio, which ruled that Trump’s effort to deport foreign-born student protesters was unconstitutional.

October 8, 2025

In summary, TSMC’s central role and its ability to meet the booming demand for AI chips position it for significant revenue growth in the coming years.

📚 Reading Comprehension Quiz

10 Points

Which of the following companies is expected to rely on TSMC as a central player in the AI supply chain?

A. AMD B. Intel C. Qualcomm D. Samsung

Please login or register to take the quiz and earn points!