TSMC Plans to Enter Advanced Memory Chip Manufacturing, Develops 3D DRAM at NVIDIA's Request

TechFlow reports on November 6, according to The Information, two sources said that TSMC (TSM.N) is considering expanding into advanced memory chip manufacturing, a move that would enable the world's largest chipmaker to secure a larger share of the AI hardware supply chain. TSMC (TSM.N) recently began developing plans to manufacture a specific type of advanced memory chip, 3D DRAM, in response to a request from its largest customer, NVIDIA (NVDA.O).

DRAM, or dynamic random-access memory, retains data while the processor accesses it. Unlike conventional DRAM, which arranges memory cells in a single layer, 3D DRAM stacks these cells vertically to hold more memory. The memory chip manufacturing sector is currently led by Samsung Electronics, SK hynix, and Micron Technology. These three firms are also developing 3D DRAM technology, intensifying competition for next-generation memory production.

This severe memory chip shortage, sparked by the AI hardware boom, has driven prices skyward and prompted chip designers like NVIDIA and Apple to seek additional supply sources. Earlier this year, Apple raised the prices of its devices due to rising memory costs.