NVIDIA's Big Move with TSMC's Cutting-Edge Tech

NVIDIA is making waves in the tech world by being the first and only company to use TSMC's new A16 process technology. This advanced tech will be the backbone of NVIDIA's next-gen GPUs, like the Feynman, which is set to follow the Rubin series launching in 2026 and 2027. The demand for AI chips is skyrocketing, and NVIDIA is stepping up its game. They're boosting production of their Blackwell Ultra chips and pushing TSMC to speed up their P3 plant. This plant is crucial for making Rubin chips using TSMC's 3nm process tech, which is a big step up from the 4NP tech used in Blackwell chips. By the end of this year, TSMC's 3nm production could reach up to 160, 000 wafer units. NVIDIA's CEO, Jensen Huang, mentioned during GTC US 2025 that the next-gen Vera Rubin Superchips are ready for production in 2026. With the fast production pace, these chips could start shipping as early as Q3 2026. Right now, NVIDIA is the only customer for the A16 process. The Kaohsiung P3 plant is set to start mass production in 2027 to match NVIDIA's product timeline. Interestingly, after Apple moves to the 2-nanometer generation, the next process might skip A16 and go straight to A14. TSMC's A16 node offers some impressive improvements. It provides 8-10% speed boost, 15-20% power reduction, and 7-10% higher chip density compared to the N2P node. So, NVIDIA's shift from N3P (Rubin) to A16 (Feynman) will bring a significant upgrade just from the process tech. The A16 process also uses Nanosheet with SPR (Super Power Rail), which improves backside power delivery and is tailored for AI/HPC markets. Production of this process is set to begin by the second half of 2026. As the first customer for A16, TSMC might give NVIDIA early access and dedicated supply. The relationship between NVIDIA and TSMC has strengthened due to the AI boom. They recently celebrated the first-ever Blackwell wafer produced on US soil and are in talks to tackle supply constraints in the AI segment. NVIDIA has dominated the AI segment so far, but competition is heating up with players like AMD, Microsoft, and Google entering the fray. It will be interesting to see how the AI segment evolves this decade and its long-term impact on the tech industry.