TSMC increases chip production by 25%

TSCM has decided to take matters into its own hands and is currently increasing chip production by 25% to prepare for a new generation of GPUs, including Nvidia’s 4000 series GPUs.

TSCM fights semiconductor problem

It has been known for a long time that the world has problems in producing semiconductors and finding resources. Taiwanese chipmaker TSMC has now decided to take proactive measures to combat the semiconductor shortage in preparation for a new generation of CPU and GPU products. TSCM is the main producer of semiconductors for AMD, Nvidia and Apple, making it the largest chipmaker in the world.

AMD and Nvidia are the biggest names in GPU production and have a new generation of GPUs scheduled for sale this year. But considering how there have been massive supply shortages for these products over the past few years, it only makes sense that TSMC is trying to tackle and solve the problem on its own before the products go into mass production. Incidentally, the problems in semiconductor manufacturing are primarily due to a bottleneck in silicon production.

Production to be increased by a quarter

According to a new rumor, TSMC will increase its chip production by a quarter before the 40-series GPUs hit the shelves. But it’s not just the 40-series that TSMC has to worry about. As mentioned earlier, AMD is preparing to launch its RX 4000 GPUs to compete with Nvidia along with its Zen4 CPUs.

As TSMC’s third largest customer, AMD will rely heavily on the chipmaker’s 5nm manufacturing capabilities. Of course, Apple remains TSMC’s largest customer. All of this means that TSMC will struggle quite a bit for now until the other companies themselves start looking for their own chip production solutions, but that’s not very likely at the moment.

More fair prices soon?

All of this is still pure speculation, but if these rumors turn out to be true, it could be that GPU prices could drop back to a normal level within the next year. With the lowered prices of the 30 and 6000 series GPUs and the introduction of the new generation of cards, the prices for these products could naturally level out with an increase in supply.

However, Intel, which relies mostly on its own chip production for its products, is also launching its first line of desktop GPUs with the Arc Alchemist series. So it could be that all these things will work together to bring the gaming world back to its old equilibrium and it’s usual balance. But it might still take a little while until then.