TSMC affirms: NVIDIA is on the way to becoming the world number 1

Samir Rahmoune

November 28, 2023 at 6:12 p.m.


Nvidia headquarters logo © Chung-Hao Lee / Shutterstock.com

The NVIDIA logo. © Chung-Hao Lee / Shutterstock.com

[Article mis à jour le 28/11/2023 à 20:30] NVIDIA is expected to be the largest computer chip supplier in terms of financial revenue for the year 2023 according to TSMC.

King of graphics processors, NVIDIA is a firm that is currently delighting investors around the world, with an explosion in its price, supported by the emergence of AI like ChatGPT. The Californian company being in fact the designer of the best chips in the field, it could only have had one prosperous year. Even to the point that the traditional heavyweight of the sector TSMC can already publicly announce that NVIDIA will be the world leader in its field for the 2023 financial year.

The boss of TSMC makes his confession

Mark Liu, the boss of TSMC, spoke last week during an event organized in Taiwan. Event during which he returned to the news of the fashionable company in the world of tech: NVIDIA.

According to its statements, NVIDIA should be the semiconductor specialist generating the highest turnover in the world at the end of the year, ahead of companies like Intel or AMD. NVIDIA had already reached revenue of $18.1 billion in the third quarter of 2023, an increase of 206%.


If TSMC says so…

AI to drive prices up further?

At the moment, NVIDIA is already, taking into account other figures, by far the largest company in the sector. Its market capitalization is in fact twice as large today as that of TSMC, reaching 1,180 billion dollars, compared to just over 500 billion for the Taiwanese company. For comparison, the capitalization of a historic company like Intel is barely $186 billion.

And we don’t see how this trend could be slowed down in 2024. Indeed, the world of artificial intelligence currently lacks suppliers, to the point that Sam Altman would have considered designing his own chips dedicated to AI .

Finally, remember that unlike a player like Intel, NVIDIA is a company fabless, that is to say, it does not have a factory to manufacture the chips it designs. For the production of its processors, it uses subcontractor foundries such as the world number 1 in the sector…. TSMC! And if the Taiwanese company does not manufacture any chips in its own name, its know-how and its advanced engraving technologies (up to 3 nm) allow it to collaborate closely with clients as prestigious as Apple, NVIDIA, AMD or Qualcomm .

Source : Wccftech

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