Step Aside Intel, TSMC Chairman Says NVIDIA Will Be World’s Biggest Chip Company

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Santa Clara, California-based semiconductor designer NVIDIA Corporation will be the biggest chip company in the world in 2023, according to the Taiwan Semiconductor Manufacturing Company’s (TSMC) chairman, Dr. Mark Liu. NVIDIA was the darling of Wall Street in 2023 as investors rushed to pile in the shares after the success of OpenAI’s ChatGPT in late 2022. NVIDIA’s shares provided the investors some respite from the stock market devastation due to high interest rates, and the firm kept up with the hype as its latest quarterly earnings report reported 3x annual revenue growth.

TSMC Chairman Says Company Is Aware Of Customer Preference For Regional Chip Production

NVIDIA’s GPUs for A.I. applications have been at the center of the technology debate in 2023 since they are the only ones right now that are capable of delivering high performance. They are used extensively by OpenAI to train ChatGPT, and growing shipments has also led NVIDIA to post stunning earnings reports throughout this year.

The firm’s latest report for the third quarter of its fiscal year 2024 saw NVIDIA’s revenue grow by 206% and its profit grow by 588% annually in a remarkable set of results for a firm of NVIDIA’s size. This pushed NVIDIA’s revenue to sit at a cool $18.12 billion for the period. At the heart of this explosive revenue growth was NVIDIA’s bread-and-butter Data Center business division. Data Center revenue during Q3 was $14.5 billion, a sizeable growth over the $3.5 billion during the year-ago quarter.

On the other hand, AMD and Intel’s latest quarterly revenues sit at $5.8 billion and $14.16 billion, respectively. Additionally, NVIDIA’s latest market capitalization is currently $1.19 trillion, while the market cap of AMD and Intel is $198 billion and $185 billion respectively.

Dr. Mark Liu at a Memorial Forum in Taiwan in 2020. Image: Guo Rixiao/Channel News Asia (CNA)

All these developments have made TSMC’s chairman, Dr. Mark Liu, confident that as 2023 ends, NVIDIA will be the largest semiconductor company in the world. The executive was speaking at an event in Taiwan last week, and reports of his comments were shared by the United Daily News (UDN). The topic of his talk surrounded TSMC’s relevance in the A.I. era, with Dr. Liu sharing that NVIDIA’s rapid growth places it right at the top of the global semiconductor supply chain.

Dr. Liu also commented on TSMC’s place in the world of A.I. and the methods in which the firm uses the technology. According to him, TSMC not only makes A.I. chips for firms like NVIDIA, but according to its chairman, the firm has already started to use the technology in its operations. Dr. Liu shared that A.I. helps the firm streamline its operations and engage in research and development.

TSMC’s high-end facilities are located in Taiwan, which has created friction globally due to geopolitical tensions between China and Taiwan. Commenting on this, Dr Liu stated that TSMC is aware of its customers’ preference for regionalized chip production. According to him, dealing with their concerns requires a patient approach thourhg which the firm will gradually increase its global manufacturing base. He added that TSMC is maintaining good working conditions with labor unions in Arizona and is satisfied by the quality of engineers in Japan where it is building new factories.

The firm’s U.S. chip site delayed production by a year earlier this year, and also saw friction between TSMC and union workers over the issue of flying in workers from Taiwan to install high-end chip-making machines.

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