“TSMC considers entering the memory business… Nvidia requests”

The Information, an American information technology (IT) media outlet, reported that Taiwan's TSMC, the world's largest foundry (consignment semiconductor manufacturing) company, is considering expanding its business scope into cutting-edge memory semiconductor manufacturing.

Citing two sources, the media reported on the 6th (local time) that TSMC has begun establishing a plan to produce 3D DRAM at the request of its largest customer, Nvidia.

These sources added that TSMC is considering entering the cutting-edge memory chip manufacturing business as Nvidia and others begin to look for additional suppliers amid a memory chip shortage that has worsened due to the artificial intelligence (AI) infrastructure construction boom.

TSMC is considering both the construction of a new plant and the acquisition and conversion of existing plants, and has not yet decided on the production date and plan to secure facilities.

In particular, Micron is also implementing a plan to acquire existing factories and convert them to production of memory chips. In March, Micron decided to purchase the PSMC plant, Taiwan's third-largest foundry company, for $1.8 billion (approximately 2.5 trillion won) and convert it to produce cutting-edge memory chips.

Sources said TSMC's memory initiative is led by Vice President Xu Guojin, who oversees advanced packaging. Vice President Xu has experience leading Micron's Taiwan corporation.

3D DRAM is a next-generation product that packs more capacity by stacking memory cells vertically, and is currently being developed by Samsung Electronics, SK Hynix, and Micron.

If TSMC enters the market, it may become a new competitor in the memory market dominated by the three companies, but TSMC is also a partner of memory companies, such as joining hands with SK Hynix in 2024 to produce the base die for the next-generation high bandwidth memory (HBM).

TSMC has a history of producing general-purpose memory chips from the 1990s to the late 2000s.

The Information pointed out that since the memory market has clear booms and recessions, TSMC may postpone its plans if supply increases or demand cools. It can take several years from research to mass production, and the fact that the three existing companies have accumulated manufacturing know-how for decades was also cited as a variable.

TSMC said in a statement: "We do not comment on market rumors or speculation. TSMC always focuses on its core business, full-time foundry."

In relation to this, Zhao Yujun, chairman of Taiwanese memory company Winbond, met with reporters on the 7th and said, "TSMC's direct entry into DRAM will be difficult due to process and patent barriers," under the premise of "personal speculation."