The race to secure AI memory supplies is putting TSMC’s manufacturing ambitions under scrutiny.
According to The Information, Taiwan Semiconductor Manufacturing Co. (TSMC) is considering producing 3D DRAM at Nvidia’s request. However, TSMC subsequently told Tom’s Hardware that it remained focused on its dedicated foundry business and serving the global logic-chip industry.
For businesses buying servers and PCs, the report offers no firm timetable for additional memory supply or lower costs.
TSMC is already the world’s largest contract semiconductor manufacturer, producing chips used in data centers, smartphones, and high-performance computing. It is a primary manufacturer of chips designed by Nvidia, Apple, AMD, and Qualcomm.
Strong demand for advanced chips has put pressure on TSMC’s manufacturing capacity. The chipmaker has also reportedly discussed price increases of up to 10 percent with its largest customers.
TSMC’s planned Arizona expansion totals $265 billion and includes 10 fabrication plants, two advanced packaging facilities, and an R&D center. The investment expands its US manufacturing footprint but does not establish plans for DRAM production.
3D DRAM places memory cells in multiple vertical levels to increase capacity. Samsung, SK Hynix, and Micron are also developing the technology, meaning TSMC would face established competitors.
According to Reuters’ account of The Information’s reporting, TSMC is considering building new factories or acquiring an existing plant and converting it for memory production. The report did not establish when production might begin.
TSMC already participates in the AI memory supply chain through logic manufacturing and packaging. Its HBM4 partnership with SK Hynix involves logic base dies and packaging integration, which are distinct from manufacturing DRAM memory cells.
Memory shortages are raising hardware costs
The memory crunch, driven by the buildout of AI data centers, has led to price increases across consumer electronics. Apple, typically able to negotiate better agreements with manufacturers, has been forced to increase prices across much of its product range due to rising memory costs.
Microsoft has also raised Xbox console prices, citing higher memory and storage costs.
Micron expects memory and storage supply-demand conditions to be tighter in 2027 and 2028 than in 2026. That outlook raises the prospect of continued cost and availability pressures for businesses planning hardware purchases.
Higher memory prices are boosting chipmakers
While electronics brands and consumers face higher prices, memory manufacturers are generating much higher revenues and profits than a few years ago. Samsung forecast a nearly ninefold year-over-year increase in third-quarter operating profit, driven largely by rising memory prices.
Major DRAM manufacturers Samsung, SK Hynix, and Micron are expanding production to meet demand.
Chinese DRAM manufacturer CXMT has also expanded its presence in the memory market. Apple has also reportedly tested CXMT memory for iPhones and MacBooks, with early discussions considering devices sold in China. Those discussions have drawn scrutiny from US lawmakers.
What's hot at TechRepublic
- Blackpoint Cyber vs. Arctic Wolf: Which MDR Solution is Right for You?
- Why AWS Sellers Choose Deepgram Over Other Voice AI Tools
- SS&C Intralinks DealCentre AI vs. Datasite: Which platform is built for the future of dealmaking?
- SS&C Intralinks FundCentre AI vs. Juniper Square: Which platform better supports modern private markets fund managers?
- Verito vs. Rightworks: Which IT Provider Is Best for Your Firm?
What IT buyers should check before their next hardware order
TSMC’s reported interest in 3D DRAM does not provide a confirmed supply option or delivery date. Procurement teams should base upcoming purchases on suppliers’ available configurations, written quotes, and delivery commitments.
Before placing server or PC orders, ask vendors:
- How long is the quoted price valid? Check whether component-price changes can affect the final invoice.
- Is the specified memory configuration guaranteed? Confirm whether substitutions require approval and whether they affect performance or support.
- What delivery date is committed? Ask whether memory availability could delay the complete system and what alternatives are available.
- What would a lower-memory configuration cost operationally? Evaluate application performance, virtualization capacity, and future upgrade requirements before accepting reduced specifications.
Prioritize purchases around workload needs. Delaying a nonessential refresh may be manageable, while reducing memory for a heavily used server could introduce performance constraints that outweigh the initial savings.
For any future TSMC memory offering, watch for confirmation of manufacturing plans, production timing, and customer qualification. Until those details emerge, the report provides little basis for changing hardware budgets or refresh schedules.