Taiwan’s Economic Daily News reported that TSMC was now using 70% to 80% of its 5-nanometer transistor-making capacity because of Nvidia orders.
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U.S. shares of Taiwan Semiconductor Manufacturing Co. outpaced the broader chip sector Monday following a report that increased AI-related orders from Nvidia Corp. have allowed the third-party fabricator to increase use of its capacity significantly.
On Monday, Taiwan’s Economic Daily News reported that TSMC
TSM,
was now using 70% to 80% of its 5-nanometer transistor-making capacity because of Nvidia
NVDA,
orders, up from previous usage levels in the more-than 50% range.
In chip parlance, nanometers, or nm, refers to the size of the transistors that are etched onto a silicon wafer to make a computer chip, with the general rule being that smaller transistors are faster and more efficient in using power.
Read from last week: TSMC stock gains as forecast update comes in ‘better than feared’
TSMC has the capacity to make up to 130,000 5-nm wafers a month, and is currently running a production volume of about 90,000 to 100,000 wafers a month because of the additional Nvidia orders, which will be delivered in July, according to the report.
Read also: Nvidia CEO feels ‘perfectly safe’ sourcing from Taiwan’s TSMC amid China tensions
Nvidia is expected to cash in big on the artificial-intelligence surge via hardware and software sales this year.
American depositary receipts of TSMC rose 4.1% on Monday to close at $107.06, while the PHLX Semiconductor Index
SOX,
finished up 3.3%, compared with a 0.9% rise by the S&P 500 index
SPX,
and a 1.5% gain on the tech-heavy Nasdaq Composite Index
COMP,
Reporters Zoe Han, Frances Yue and Isabel Wang translated an article about TSMC from Taiwan publication Economic Daily News.
This post was originally published on Market Watch
