Nvidia To Become The World's Largest Semiconductor Firm In 2023, According To TSMC Chairman
Arthur T Knackerbracket has processed the following story:
TSMC chairman Mark Liu believes Nvidia will become the largest semiconductor firm by the end of the year (via Trendforce). Speaking at a lecture held by the Chinese National Association of Industry and Commerce, Liu discussed the future of TSMC in an AI-focused world and stated that Nvidia would develop into the world's largest semiconductor company thanks to AI.
[...] As for Nvidia's rivals, the company made more revenue than Intel, Samsung, and even TSMC, the company that produces the vast majority of Nvidia's chips. Nvidia also beat them all in profit, especially Intel, which lost $8 million, and Samsung, which saw $2.86 billion wiped out due to factors like the NAND flash crisis. That's presumably why Liu believes Nvidia will be the largest of its peers by the end of the year.
However, there are some caveats to Liu's claims. Although Nvidia did beat out its immediate rivals and made the most money in Q3, that might only have been possible since Intel, Samsung, and TSMC are in a slump. All three companies were doing significantly better in revenue before the start of the year, and they all have posted at least one quarter with more than $20 billion in revenue since 2021. If this turns out to be a temporary dip rather than a permanent development, Nvidia would need to make even more money to keep up.
[...] Liu also noted that fabless chip designers like Nvidia, AMD, and Google are expected to grow by 10% in the next five years, while projections for Intel and Samsung (the only chip designers to own their fabs) are at just 4% in the same time frame. Both companies have declined for a year or so, with Intel taking great measures to reform its business. TSMC, of course, stands as a major beneficiary if these projections prove accurate, as most fabless companies who want to make cutting-edge processors go to TSMC.
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