Investing.com -- Nvidia (NASDAQ:NVDA), the U.S. AI chip giant, continues to demand advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC), its main contract chipmaker, although the type of technology it requires is shifting, according to CEO Jensen Huang. Huang’s comments came on Thursday in response to questions about potential order cuts from the company.
Nvidia’s most sophisticated AI chip, named Blackwell, is composed of several chips merged using a complex chip on wafer on substrate (CoWoS) advanced packaging technology provided by TSMC. Huang clarified that as Nvidia transitions into Blackwell, the company will primarily use CoWoS-L, a newer type of technology. However, the production of Hopper, Nvidia’s GPU architecture platform preceding Blackwell, will continue using CoWoS-S.
Huang noted that this shift in technology is not about reducing capacity but rather increasing capacity into CoWoS-L. Nvidia’s focus on CoWoS-L was also confirmed by TF International Securities analyst Ming-Chi Kuo on Wednesday, who suggested that suppliers would be affected by this change.
Despite reports from Taiwan media that Nvidia was reducing CoWoS-S orders from TSMC, potentially impacting the Taiwanese chip foundry’s revenue, Nvidia’s Blackwell chips continue to sell as quickly as TSMC can manufacture them. However, packaging has remained a bottleneck due to capacity constraints. Huang stated that the amount of advanced packaging capacity is approximately four times the amount available less than two years ago.
Huang refrained from answering questions about the new U.S. export restrictions limiting AI chip exports to most countries, excluding a select group of close U.S. allies, including Taiwan.
In related news, Huang is expected to attend Nvidia Taiwan’s annual new year party this week in Taipei.
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