TSMC is evaluating entry into the advanced memory market at NVIDIA's request, according to US tech media The Information. The Seoul Economic Daily warned on November 7 that successful memory chip mass production by the Taiwan foundry giant could enable it to control the entire AI chip supply chain. TSMC is considering 3D DRAM manufacturing through new facilities or acquisitions, though its spokesperson stated the company remains focused on logic IC foundry business. This would disrupt the industry's traditional division where Taiwan dominates foundry services and South Korea specializes in memory production.
TSMC Denies Memory Market Plans Despite Report
The Information reported that TSMC is evaluating plans to manufacture 3D DRAM, with preliminary options including building new facilities or acquiring and retrofitting existing ones. The exact investment scale and production timeline have not been finalized. TSMC's spokesperson responded to Tom's Hardware stating the company has always focused on its core business of professional integrated circuit foundry services. "Our mission is to be a trusted technology and capacity provider for the global logic integrated circuit industry for years to come," the spokesperson said.
3D DRAM Technology Differs from Current HBM Approach
The 3D DRAM technology TSMC is evaluating differs from current high-bandwidth memory (HBM) that increases transmission speed through chip stacking. TSMC's assessed 3D DRAM technology primarily increases overall storage density by vertically stacking memory cells. Currently, NVIDIA's graphics processing units (GPUs) are manufactured by TSMC, while accompanying HBM mainly relies on supply from SK Hynix and Samsung Electronics.
Korean Memory Giants Face Potential Supply Chain Disruption
Korean media expressed concern that if TSMC successfully masters memory production capacity, customers could directly obtain one-stop services. This complete supply chain control covering GPU manufacturing, memory, and advanced packaging would significantly weaken the bargaining power of Korean companies. The potential layout could break the traditional division of the global semiconductor landscape, where Taiwan dominates foundry and South Korea specializes in memory.
Technical Barriers Protect Korean Market Position Short-Term
Despite emerging medium- and long-term competitive pressure, the market position of Korean companies remains difficult to shake in the short term. Because 3D DRAM still has bottlenecks in vertical stacking technology, stable yield rates and large-scale mass production still require several years. Additionally, Samsung, SK Hynix, and US giant Micron are also actively developing the same technology. With their rich mass production experience, TSMC is expected to still find it difficult to quickly close the technical gap between the two sides in the short term.
FAQ
What memory technology is TSMC evaluating for production?
TSMC is evaluating 3D DRAM technology, which increases storage density by vertically stacking memory cells, differing from current HBM that stacks chips to boost transmission speed.
Why did Korean media warn about TSMC's potential memory market entry?
The Seoul Economic Daily warned on November 7 that TSMC's successful memory production would enable one-stop AI chip services covering GPU manufacturing, memory, and packaging, potentially weakening Korean firms' bargaining power in the supply chain.
