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NVIDIA pays TSMC $6.9 billion to secure 5nm wafers for next-gen GeForce RTX 40 series GPUs

NVIDIA is apparently paying TSMC $6.9 billion to secure their next-generation 5nm wafers for its future Ada Lovelace GPUs, which will power the next-generation GeForce RTX 4000 series graphics cards.

A bigger long-term agreement has also been purportedly reached, with NVIDIA paying TSMC $6.9 billion in order to obtain next-generation 5nm wafers for Ada Lovelace. NVIDIA’s next-gen GeForce RTX 40 series GPUs will be manufactured by TSMC, not Samsung, as previously reported.

However, NVIDIA is paying much more than usual for TSMC’s 5nm wafers, with the company reportedly paying $1.64 billion in Q3 2021 and $1.79 billion in Q1 2022 as they ramp up to the Ada Lovelace GPU being made and printed onto next-gen GeForce RTX 40 series GPUs.

NVIDIA is making a move that it needs to in order to… well, frankly survive. The company makes its bread and butter from GPUs and if it can’t sell enough — especially of the very best, which TSMC will be capable of providing with its new N5 node — then well, that’s not going to be good at all. NVIDIA can’t have another misfire as things will be radically different for Team Green in 2022, 2023, and beyond.

Samsung has been making Ampere GPUs for NVIDIA and its GeForce RTX 30 series, but we all know they aren’t the most power-efficient GPUs when you get to the high-end. AMD has hit its stride with its RDNA 2 GPU architecture, with TSMC baking their Radeon RX 6000 series chips on the 7nm node — the same node used to make the semi-custom chips inside of the PlayStation 5 and Xbox Series X consoles — and they’re fantastic with power.

AMD will have its next-gen RDNA 3 architecture here with an MCM-based design — MCM being a multi-chip module, so multiple GPU chiplets on the same card, similar to how the Zen CPU chiplets are on the Ryzen CPUs — and will offer some truly monster performance on the next-gen Navi 31-based Radeon RX 7900 XT.