Taiwan Semiconductor Manufacturing Co (TSMC) is exploring a potential expansion into advanced memory chip manufacturing, a move that could strengthen its position in the rapidly growing artificial intelligence hardware market, according to a report by The Information on Friday.
The world’s largest contract chipmaker has recently begun developing plans to produce 3D DRAM, an advanced memory technology, following a request from its largest customer, Nvidia, the report said, citing two people familiar with the discussions.
Neither TSMC nor Nvidia immediately responded to requests for comment.
TSMC is reportedly considering several options to enter the advanced memory market, including building new manufacturing facilities. However, the company has not yet established a timeline for starting production. Another possibility under consideration is acquiring an existing semiconductor plant and converting it into a memory chip manufacturing facility, following a similar move by Micron earlier this year to expand its DRAM production capacity.
Dynamic random-access memory (DRAM) chips temporarily store data in electronic devices. The emerging 3D DRAM architecture uses vertically stacked memory cells instead of arranging them in a single horizontal layer, allowing manufacturers to increase storage capacity.
According to the report, the initiative is being led by TSMC Vice President Hsu Kuo-chin, who oversees the company’s advanced packaging operations.
The potential expansion comes amid a growing global shortage of memory chips, driven largely by surging demand from artificial intelligence applications. The supply constraints have pushed up prices and prompted semiconductor designers to seek additional sources of memory components.
If TSMC proceeds with the initiative, it will enter a highly competitive market dominated by established manufacturers, including Samsung Electronics, SK Hynix and Micron.
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