TSMC Unlikely to Enter DRAM Market, Foreign Media Say Partnering With Memory Makers Is Enough

At a glance

Taiwan's TSMC has in effect drawn a line under foreign reports that it is considering producing 3D DRAM (memory chips made by stacking multiple layers) at the request of its customer Nvidia. A foreign IT outlet analyzed that there is little benefit for TSMC to make memory chips itself.

Key points

1. 1

   Through a spokesperson, TSMC said it will focus on its core business, semiconductor contract manufacturing (foundry).

2. 2

   TSMC is already capturing a lot of added value by making the logic base die, the bottom chip of HBM (high-performance memory made by stacking multiple memory chips).

3. 3

   Building DRAM in-house is expected to require several billion dollars for process development and tens of billions of dollars for factory construction.

4. 4

   Memory faces a high risk of poor market conditions when supply exceeds demand, so the assessment is that TSMC has little reason to rush in.

Why it matters

As memory plays a bigger role in AI chips, this helps show how the partnerships among major chip companies may develop.