- Only the most critical parts of Nvidia’s Feynman chips, set to debut in 2028, will be produced using TSMC’s A16 process, according to a report.
- For Nvidia, it could mean design compromises, potential cost increases, or supply constraints down the line.
- NVDA shares have lost 6% in the last four sessions amid market volatility linked to the U.S.-Iran war.
Nvidia Corp. is planning to tweak the design of its next-generation Feynman AI chips because it is unable to secure enough capacity on TSMC’s cutting-edge A16 process, Taiwanese business news site cnYES reported on Sunday.
It was reported earlier that Nvidia was the first and only customer for TSMC’s 1.6 nanometer node, the most advanced process scheduled for volume production in the second half of this year. It is an upgraded version of the current standard 3 nm process and the 2 nm process, which has just entered production.
Now, due to a shortage of available capacity, Nvidia and TSMC plan to make only the most critical parts on the A16 process, while others will shift to the older N3P (3nm) node, according to the cnYES, which cited “industry reports.”
Nvidia’s Feynman Roadmap
For Nvidia, it could mean design compromises, potential cost increases, or supply constraints down the line; for the broader chip sector, it reinforces that TSMC holds enormous pricing and strategic power, and that suppliers tied to advanced manufacturing equipment and materials could see a strong demand tailwind.
Nvidia, which continues to see an incredible demand for its AI chips, first announced the Feynman system at its GTC conference last year, and they are expected to be launched in 2028.
The Feynman chips are positioned as the successor to Nvidia’s Rubin chips, which are in mass production and expected to reach customers in the second half of this year.
Named after Nobel Prize-winning physicist Richard Feynman, it is part of Nvidia’s long-term roadmap to power increasingly complex AI systems, following the Rubin platform’s focus on large-scale training and inference aimed at AI data center workloads.
NVDA Stock Under Pressure
Nvidia shares have fallen for a fourth straight session, shedding 6%, as persistent U.S.-Iran tensions continue to rattle global markets, with the company also featuring in news because of illegal exports of its chips by a top executive from Super Micro Computer.
Stocktwits sentiment for Nvidia shifted to ‘neutral’ from ‘bullish’ by late Sunday. The sentiment for TSM has held up in the ‘bearish’ zone.
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