TSMC Plans to Enter Advanced Memory Chip Manufacturing, Moves into 3D DRAM at Nvidia's Request

According to The Information, two sources said that 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 drawing up plans to produce a specific type of advanced memory chip — 3D DRAM — in response to a request from its largest customer, Nvidia (NVDA.O).

DRAM, or dynamic random-access memory, holds data while a processor uses it. Unlike conventional DRAM, which places memory cells in a single layer, 3D DRAM stacks cells vertically to hold 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. A severe shortage of memory chips triggered by the AI hardware boom has sent prices soaring and prompted chip design companies such as Nvidia and Apple to look for additional sources of supply.

Earlier this year, Apple raised prices for its devices due to rising memory costs. (Jinshi)