TSMC Plans to Enter Advanced Memory Chip Manufacturing, Positioning for 3D DRAM at NVIDIA's Request

According to TechFlow news on November 6, citing a report by The Information, two sources said TSMC (TSM.N) is considering expanding into advanced memory chip manufacturing, a move that would give the world's largest chipmaker a larger share of the AI hardware supply chain. TSMC (TSM.N) recently began drafting plans to produce a specific type of advanced memory chip, 3D DRAM, in response to a request from its largest user, NVIDIA (NVDA.O).

DRAM, or dynamic random access memory, stores data while processors use it. Unlike conventional DRAM, which places memory cells on a single layer, 3D DRAM stacks cells vertically to accommodate more memory. Memory chip manufacturing is currently dominated by Samsung Electronics, SK Hynix, and Micron Technology. These three companies are also developing 3D DRAM technology, competing in next-generation memory manufacturing.

The severe memory chip shortage triggered by the AI hardware boom has led to price surges and prompted chip designers such as NVIDIA and Apple to seek additional supply sources. Earlier this year, Apple raised prices on its devices due to higher memory costs.

Source: TechFlow