NVIDIA’s AI GPU Shortage Could Last Till 2025 Due To Supply Constraints, Says TSMC

wccftech.com:

TSMC has acknowledged that the immense demand from the AI sector has severely hindered their supply chain, claiming that the shortage of AI GPUs from NVIDIA and other companies could last up to 1.5 years.

Speaking at Semicon Taiwan, TSMC's chairman Mark Liu admitted that the business has seen a huge boost in orders from NVIDIA and partners, primarily due to the rise of GenAI development, which requires huge computing capabilities. TSMC reiterated that the bottleneck persists in CoWoS packaging, and the company didn't expect such a huge rise in orders going into 2023.

It is not the shortage of AI chips, it is the shortage of our CoWoS capacity. Currently, we cannot fulfill 100% of our customers' needs, but we try to support about 80%. We think this is a temporary phenomenon. After our expansion of [advanced chip packaging capacity], it should be alleviated in one and a half years

-Mark Liu via Nikkei Asia

TSMC witnessed three times the usual orders, specifically for its CoWoS packaging services, since the process constituents a large share in the production of AI GPUs. However, TSMC has expressed that they are working on upscaling facilities to meet the demand from the AI sector, and it hopes to double down the production by 2024. This won't still be enough for now, as disclosed by the Taiwan giant since the shortage could remain for an extended period.

TSMC's CoWoS packaging facilities are occupied by large orders from NVIDIA for its AI GPUs. While the company is working on expanding facilities, this is a long-term move, and NVIDIA, currently in the spotlight, can't compromise on time for anything. To capitalize on this opportunity, companies like Intel and Samsung are reportedly collaborating with NVIDIA to get their share