Nvidia’s Jensen Huang Predicts TSMC Will Need to Double Production Capacity Over Next Decade

• February 2, 2026

During a recent trip to Taiwan, Nvidia’s founder and CEO Jensen Huang emphasized the growing demand cycle that the company is driving in the semiconductor industry. Meeting with leadership at Taiwan Semiconductor Manufacturing Company (TSMC), Huang highlighted that Nvidia has surpassed Apple as TSMC’s largest customer.

Nvidia Spurs Record Demand for Semiconductor Capacity

Given Nvidia’s expanding business and increasing dependence on advanced chips, Huang stated that TSMC will need to more than double its production capacity over the coming decade to keep pace with the demand. This forecast underlines the critical role Nvidia now plays in the global chip ecosystem and illustrates the escalating pressure on foundries to ramp up manufacturing capabilities.

TSMC, a leading contract chipmaker, has long been a pivotal supplier in the technology supply chain, serving many of the world’s largest electronics companies. Nvidia’s rise as TSMC’s top client marks a significant shift and reflects the company’s leadership in high-performance computing and AI-related silicon.

The semiconductor industry faces intense demand growth driven not only by gaming and data center applications but increasingly by artificial intelligence workloads and graphical processing needs. As a result, the need for expanded production capacity is more urgent than ever, and Huang’s remarks underscore that the next ten years will be crucial in determining the industry’s ability to scale manufacturing.

Expanding production capacity at TSMC will involve significant investments in new fabrication plants, advanced process technologies, and supply chain enhancements. However, the challenge remains substantial as the industry continues to grapple with supply constraints, geopolitical dynamics, and the rising complexity of chip designs.

With Nvidia’s position as a key driver of technology trends and as a demanding customer for cutting-edge chips, the company’s collaboration with TSMC will remain central in shaping chip manufacturing capacity and strategy on a global scale. The predicted doubling of production capacity reflects both the opportunity and the necessity for the semiconductor industry to adapt to rapidly evolving market needs over the next decade.

Nvidia’s CEO says TSMC must more than double its chip manufacturing capacity in the next ten years to meet rising demand.