Rumor has it that Nvidia prepaid billions of dollars to grab TSMC's 5nm production capacity

According to industry sources, Nvidia's next-generation GPU will be manufactured by TSMC's 5nm process, and billions of dollars have been paid to ensure production capacity.

According to wccftech, citing My Drivers, Nvidia has prepaid TSMC about US$1.64 billion in the third quarter of 2021, and will pay US$1.79 billion in the first quarter of 2022. The entire long-term order prepayment will reach US$6.9 billion, which is much higher than the price they paid last year. In addition, Nvidia is said to use this money not only to purchase production capacity from TSMC, but also to obtain production capacity from Samsung, but it seems that most of this money will be used for TSMC's 5nm technology.

The report pointed out that TSMC's demand for Apple, MediaTek, and AMD, the three major customers, is relatively low, and they do not need to pay too much deposit in advance to stabilize production capacity. Customers such as Nvidia need to pay a large advance payment in advance if they want to obtain 5nm production orders.