Nvidia’s $150B Taiwan Investment Boosts TSMC Supply for Apple
AAPL•Nvidia will invest up to $150 billion annually in Taiwan chipmaking projects and AMD plans a $10 billion capacity expansion, prompting TSMC shares to rise 1.6% in premarket trading. As Apple relies on TSMC for advanced A-series chips, the capacity boost could alleviate production bottlenecks and support future iPhone and Mac launches.
1. Nvidia’s $150 Billion Taiwan Investment
Nvidia announced plans to invest up to $150 billion annually in Taiwan facilities, including establishing a new headquarters to deepen collaboration with TSMC and accelerate AI chip output. CEO Jensen Huang highlighted Taiwan as the epicenter of the AI revolution and forecasted spending growth from $15 billion to $150 billion per year.
2. AMD’s $10 Billion Capacity Expansion
Advanced Micro Devices committed $10 billion to ramp up manufacturing partnerships in Taiwan after raising its chip demand forecast. CEO Lisa Su indicated that stronger-than-expected market demand justified the investment to secure additional production slots at key foundries.
3. TSMC Share Reaction
Shares of Taiwan Semiconductor Manufacturing Co. rose 1.6% in premarket trading, approaching their all-time high as investors priced in the incoming capital inflows. Despite a 36% year-to-date gain, retail sentiment remains cautious on potential resistance near previous peaks.
4. Apple’s Supply Chain Implications
With TSMC slated to receive substantial new investments, Apple could benefit from eased wafer constraints for its in-house A-series processors. Expanded capacity may reduce component lead times, supporting tighter launch schedules for upcoming iPhone and Mac models.
