Nvidia Faces Issues with Blackwell Chips
Nvidia’s latest Blackwell chips, now being installed in Microsoft Azure servers, are encountering problems in high-voltage environments typical of data centers. Reports suggest that Nvidia and TSMC are pointing fingers at each other over the defects—Nvidia claims it’s due to TSMC’s packaging technology, while TSMC asserts that Nvidia rushed production. This friction threatens their three-decade-long partnership, though it’s unlikely Nvidia will turn to Samsung again, given previous challenges when it partnered with the company for its Ampere GPUs.
TSMC Still Dominates the Chip Market
Despite the ongoing tension, TSMC remains the top choice for Nvidia, thanks to its more advanced process nodes and sole focus on third-party production. The memory of supply issues and skyrocketing prices from its past Samsung collaboration likely makes Nvidia hesitant to shift back. While TSMC’s sales surged 39% year-over-year, and Samsung struggles with declining stock prices, TSMC remains in a stronger position overall.
My Take
Nvidia may simply be looking to negotiate better terms with TSMC. While the tension could shake things up in the short term, TSMC’s technological lead and Nvidia’s experience with Samsung suggest that their partnership will endure.
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Link to article:
https://finance.yahoo.com/news/nvidia-might-blame-game-tsmc-150741775.html
Credit: PC Gamer, Yahoo Finance