TSMC Weighs 3D DRAM Production After Request From Nvidia

Taiwan Semiconductor Manufacturing Co. (TSMC) is considering producing 3D dynamic random-access memory after a request from Nvidia, a move that could expand the chipmaker’s role in the AI hardware supply chain.

TSMC has begun planning production of the memory technology at Nvidia’s request. The proposed technology stacks memory cells vertically to fit more capacity. Conventional DRAM places its cells in a single layer. DRAM holds data that processors use while running tasks.

TSMC shares rose 7.5% in premarket trading Friday. The company is the world’s largest chipmaker, and memory manufacturing is currently dominated by Samsung Electronics, SK hynix and Micron Technology. Those three companies are developing their own 3D DRAM technology, adding to competition over next-generation memory.

The move comes as demand for AI hardware has contributed to a serious memory shortage and rising prices. Chip designers such as Nvidia and Apple are seeking additional suppliers, and Apple raised prices for its devices earlier this year as memory costs increased.