The World’s largest contract-based chip manufacturing firm, TSMC has bagged the contract from NVIDIA to manufacture most of its upcoming 7 and 5nm chips. The Taiwan based silicon manufacturer has previously manufactured various chips for NVIDIA and the new contract further strengthens their business relation.

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Last year, at the GTC 2019 event held in China, NVIDIA CEO – Huang Renxun had revealed that most of the next-gen 7nm GPU will be manufactured by TSMC. If you’re unaware, TSMC has manufactured NVIDIA 16nm (Pascal) and 12nm (Volt / Turing) GPUs in the past.

TSMC’s direct competitor in the business is none other than Samsung. It’s been speculated that Samsung Electronics’ 5nm EUV process has attracted orders from NVIDIA for its next-generation graphics processor series, but the deal didn’t go through. As a result, sources familiar with the matter believe TSMC will remain as the major foundry partner of NVIDIA.

Reportedly, Nvidia is gearing up for the launch of its next-gen GeForce RTX 30 series which will likely happen at the end of Q3 this year. It’s also being reported that Taiwan’s three major graphics card manufacturers, ASUS, Gigabyte, and MSI, are accelerating the destocking of RTX 20 series graphics cards which is not good for NVIDIA.

NVIDIA’s upcoming RTX 30 series is expected to be a 7-nanometer chip based on NVIDIA’s Ampere architecture. It should come as a direct competitor to AMD’s Radeon VII: The first GPU to use a 7nm process. Literally AMD has a leg-up on NVIDIA as of now, nonetheless, NVIDIA should make things a little interesting with its upcoming RTX 30 Series in the graphics world.

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