During a Goldman Sachs technology conference on September 12, NVIDIA CEO Jensen Huang discussed the company’s reliance on TSMC for chip manufacturing while also indicating flexibility in sourcing if needed. Huang acknowledged TSMC’s significant lead in manufacturing capabilities, underscoring NVIDIA’s dependency on the firm for its most critical chips.
Despite this reliance, Huang emphasized that NVIDIA has developed most of its technology in-house, suggesting that the company could shift orders to other suppliers if necessary. He cautioned, however, that such a move could impact chip quality. “TSMC’s flexibility and their ability to respond to our demands is incredible,” Huang stated. “That’s why we have them produce our chips—they’re outstanding. But if necessary, we can certainly look for other suppliers.”
Huang also addressed the ongoing chip supply shortages that are frustrating customers and straining relationships. He noted that, “The demand for chips is enormous; everyone wants to be first in line and get the most chips possible. Naturally, there may be some frustration among customers. We are doing our utmost to meet that demand.”
Regarding the much-anticipated Blackwell architecture chips, Huang reported strong demand while indicating that production from suppliers is gradually catching up.
Following these remarks, NVIDIA’s stock surged by 8.15% to $116.91, marking its largest single-day increase in six weeks. After a remarkable increase of 239% in 2023, NVIDIA’s stock is up more than 100% this year.