Following NVIDIA’s latest earnings announcement, it is evident that their exponential growth in Artificial Intelligence (AI) has propelled them to become the world’s second most valuable company, surpassing Apple.
Chung Ching Wei, the CEO of TSMC, NVIDIA’s major supplier, disclosed to Nikkei, a Japanese media outlet, that he previously complained about the high pricing from Jensen Huang, NVIDIA’s CEO. Wei noted that this pricing reflects the true value of NVIDIA’s products. However, TSMC must also demonstrate an increase in their own value.
This commentary has led many, including media and analysts, to speculate that TSMC may be considering raising chip production prices. Huang himself expressed support for this increase, stating that it aligns with TSMC’s value and he looks forward to their continued success.
Nevertheless, last week, TSMC informed local Taiwanese media that their pricing strategy is based on a strategic approach rather than a rushed decision.
It is worth noting that Wei has previously discussed price increases, particularly in cases where establishing factories outside the country is necessary.
Source: Business Insider
TLDR: NVIDIA’s growth in AI has elevated them to the world’s second most valuable company, sparking discussions about potential chip production price increases at TSMC.
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