Nvidia H200 Chip Orders and 2nm Mass Production Propel TSMC Capacity
Nvidia has requested TSMC ramp production of H200 AI chips to fill orders exceeding 2 million units for delivery in 2026, increasing wafer throughput. TSMC confirmed mass production progress on its 2nm node and secured a U.S. license to import chipmaking equipment for its Nanjing plant, bolstering advanced-node revenue.
1. Delta Investment Management Reduces TSM Stake
In its latest 13F filing, Delta Investment Management LLC cut its position in Taiwan Semiconductor Manufacturing Company Ltd. by 11.5% during the third quarter, selling 2,820 shares and ending the period with 21,692 shares on hand. TSMC now represents 1.1% of Delta’s overall portfolio, ranking as its 26th largest holding. The firm’s remaining TSMC shares were valued at approximately $6.1 million at quarter-end, reflecting a strategic rebalancing within its semiconductor exposure.
2. Broader Hedge Fund Positioning
Other institutional investors have initiated or expanded positions in TSMC over recent months. Heartwood Wealth Advisors and Resources Management Corp established new stakes worth roughly $32,000 each in the second and third quarters, while Mid American Wealth Advisory and Navigoe LLC each added positions valued at $33,000 to $42,000. First Command Advisory Services boosted its TSMC holding by 174.1%, acquiring an additional 101 shares to reach 159 shares total. Collectively, hedge funds and similar institutions now own 16.51% of the company’s outstanding shares.
3. AI Chip Demand Drives Wafer Capacity Utilization
TSMC has received direct orders from Nvidia to accelerate production of its H200 artificial intelligence accelerators in response to surging demand from Chinese cloud providers. Industry reports indicate that wafer fab utilization rates at TSMC’s leading-edge nodes have climbed above 95% as a result of this order flow. The ramp of H200 production is expected to contribute incremental revenue of several hundred million dollars per quarter once fully scaled, underscoring TSMC’s critical role in global AI supply chains.
4. Technology Roadmap and Regulatory Relief
TSMC confirmed during its recent technology symposium that mass production of its 2-nanometer process is progressing on schedule, marking a significant step in maintaining its technology leadership. This advance supports the company’s long-term margin expansion and pricing power for next-generation logic devices. Additionally, the U.S. Department of Commerce granted TSMC an annual license to import advanced lithography equipment to its Nanjing facility, removing a key operational constraint and ensuring continuity of high-volume production for Chinese customers.