With the explosion of artificial intelligence, almost all companies want to strengthen or transform their systems by purchasing artificial intelligence hardware. Nvidia, on the other hand, has the sole position in this market with its artificial intelligence GPU and CPU solutions. However, according to TSMC, intense demand from the artificial intelligence industry is seriously hindering the supply chain. Therefore, the artificial intelligence GPU shortage has begun.Artificial intelligence GPU shortage has begun
TSMC acknowledged that heavy demand from the AI industry has severely hampered supply chains, saying the shortage of AI GPUs from Nvidia and other companies could last up to 1.5 years.
TSMC Chairman Mark Liu admitted that there has been a huge increase in orders from Nvidia and its partners, mainly due to the rise of GenAI (generative artificial intelligence) development, which requires massive computing capabilities. TSMC stated that the bottleneck in CoWoS packaging continues and that the company was caught unprepared.
TSMC is witnessing three times the normal orders, especially for CoWoS packaging services, as this process accounts for a large share in the production of AI GPUs. However, TSMC stated that they are working to expand the facilities to meet the demand from the artificial intelligence industry and that they hope to double production by 2024. As announced by the Taiwanese giant, this does not seem to be enough for now as the shortage could continue for a long time. It is said that the famine may continue until at least 2025.
TSMC’s CoWoS packaging facilities are inundated with bulk orders for Nvidia’s AI GPUs. Although the company is working to expand facilities, this is a long-term move and there is no time to waste for Nvidia. For this reason, Nvidia has turned to Intel and Samsung’s HBM and GPU packaging services.Recently, both AMD and Nvidia have stated that their AI-based revenues could reach hundreds of billions of dollars. However, this prediction is overly optimistic. Because such targets usually do not take into account the production shortage. However, eventually the production shortage will end and demands will be met. On Nvidia’s side, things are better than AMD. The company has a very right product at a very right time: H100. However, Nvidia plans to sell 1.5 to 2 million H100s by 2024.
48845
