On November 8, 2025, Nvidia CEO Jensen Huang announced that the company is requesting additional wafer supplies from Taiwan Semiconductor Manufacturing Company (TSMC) to keep pace with the accelerating demand for its AI‑centric chips.
The request is driven largely by the Blackwell platform, Nvidia’s latest AI architecture that has become the backbone of its data‑center revenue. TSMC, which manufactures more than 90 % of the world’s most advanced chips, is Nvidia’s primary foundry partner. The company’s capacity constraints—stemming from a backlog of orders for 3‑nanometer and 2‑nanometer nodes—have prompted Nvidia to secure extra wafers to avoid production bottlenecks.
Financially, Nvidia’s Q3 FY2025 revenue hit $35.1 billion, a 94 % year‑over‑year jump, with Data Center revenue reaching $30.8 billion. TSMC’s Q3 2025 revenue was $33.1 billion, up 30.3 % YoY, and its gross margin stood at 59.5 %. These figures underscore the high‑margin nature of AI chip manufacturing and the strong cash‑flow generation that fuels both companies’ expansion plans.
Management comments highlight the confidence behind the move. Huang said, “The business is very strong; it’s growing month by month, stronger and stronger,” and added that “TSMC is doing a very good job supporting us on wafers.” TSMC CFO Wendell Huang noted that the third‑quarter business was “supported by strong demand for our leading‑edge process technologies,” while CEO C.C. Wei emphasized that the AI market “continues to be very positive” and confirmed the wafer request.
Market reaction to the announcement has been mixed. Nvidia’s stock has experienced volatility, with valuation concerns and U.S. export restrictions to China dampening investor enthusiasm despite the company’s robust earnings. TSMC’s guidance for Q4 2025—revenue between $32.2 billion and $33.4 billion—signals confidence in sustaining growth, but the company also faces headwinds from rising raw‑material costs and geopolitical pressures.
The broader implication is that the AI supercycle is intensifying. Nvidia’s reliance on TSMC for advanced process nodes positions both firms at the center of a high‑growth industry, while TSMC’s expansion of 2‑nanometer production in the U.S. and global investments aim to mitigate supply constraints and geopolitical risks. Together, the two companies are poised to capture a growing share of the AI chip market, but they must navigate capacity limits, cost pressures, and regulatory uncertainties to maintain their competitive edge.
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