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AMD, Apple and Nvidia want to buy fewer chips from TSMC – Computer – News

AMD, Apple and Nvidia want TSMC to make fewer chips for it, DigiTimes reports based on its own sources. AMD and Apple will actually get fewer chips from TSMC, but TSMC doesn’t want to do that for Nvidia.

Demand for consumer products such as smartphones and computer components has fallen faster than expected in recent months, DigiTimes sources say† Therefore, manufacturers now have a very large inventory and the prices of these products are dropping. To counteract lower prices, manufacturers have asked TSMC to produce fewer chips.

For example, Apple initially planned to make its first batch of 90 million iPhone 14 smartphones, but the company has since reduced that by ten percent. So Apple asked TSMC to produce fewer chips.

AMD asked the chip maker to make 20,000 fewer 6nm and 7nm chips in the last quarter of this year and the first quarter of next year. These chips are used in processors and GPUs from the manufacturer. According to sources, AMD has not reduced orders for 5nm chips.

Nvidia was also going to ask TSMC to provide fewer chips, but TSMC didn’t want to, according to the sources. Nvidia paid TSMC extra to guarantee its capacity, having previously had chips made by Samsung. However, Nvidia now still has a very large number of current generation GPUs in stock and used mining video cards are being sold because they are less profitable for cryptocurrency mining.

It’s about an order for 5nm chips for RTX40-series GPUs, which Nvidia wanted to cut down on. TSMC doesn’t want to do that, according to DigiTimes, but is instead proposing to delay production by a quarter or two, until the first quarter of next year. In addition, Nvidia is responsible for finding another customer that can use TSMC’s released production capacity.

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Despite lower demand from the three companies, TSMC remains positive, according to DigiTimes sources. Demand from the automotive and supercomputing sectors remains strong; In some cases, demand exceeds what TSMC can produce.