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NVIDIA works deeply with TSMC on semiconductor physics and limits; custom cooling/aerodynamics engineering critical to pushing chip density and performance
Jensen Huang· NVIDIA· AI· 2026-07-22· about TSMC (TSM)
“Even though we have them made by TSMC, we assume that we need to have the deep expertise that TSMC has. And so we have people in our company who are incredibly good at semiconductor physics... we work very closely with them to discover the limits because we're trying to push the limits.”
Why it matters
NVIDIA's tight collaboration with TSMC on semiconductor physics and limits reveals dependency on TSMC's advanced process nodes and custom co-development. This is a key bottleneck for NVIDIA's next-gen chip roadmap.
Investment implication
TSMC remains the irreplaceable supplier for high-end AI chips. The deep collaboration suggests TSMC will capture sustained pricing power and capex growth. Alternative fabs (Samsung, Intel) remain distant competitors.