TSMC mulls making advanced AI memory chips: report

TSMC, primarily known for manufacturing logic chips that process data, is reportedly drafting plans to produce 3D DRAM, a type of advanced memory chip used for data storage. This initiative is said to be driven by Nvidia, a major customer facing a severe memory chip shortage due to booming demand for AI hardware, which has sent prices soaring.

The consideration of this new business line, helmed by TSMC vice president Hsu Kuo-chin, comes as chip designers like Nvidia and Apple Inc. are seeking additional sourcing for memory components. The report also notes TSMC is exploring acquiring and converting a plant for memory production, indicating the potential scale of such an endeavor.

Despite these reports, TSMC's official statement emphasized its consistent focus on its core business of manufacturing chips designed by other companies, positioning itself as a trusted provider of logic chips. The company did not specifically address memory chips in its public comments, reaffirming its stated mission to serve the logic chip market.

Should TSMC proceed with 3D DRAM production, it would represent a strategic expansion beyond its traditional core, potentially addressing a critical bottleneck in the AI supply chain. This move could strengthen its relationships with key customers like Nvidia by offering a more integrated solution for advanced AI hardware, even as it navigates its established identity as a logic chip foundry.