TSMC Weighs 3D DRAM for Nvidia as AI Memory Shortage Bites

TSMC has begun drawing up plans to manufacture 3D DRAM at Nvidia's request, The Information reported. The move would push the pure-play foundry into memory, a category it has historically left to Samsung, SK Hynix and Micron.

In 3D DRAM, memory cells are stacked vertically rather than arranged on a single horizontal layer, a design intended to pack more capacity into a smaller footprint. TSMC could build new factories or acquire and convert an existing plant, the report says. No production timeline has been set.

The evaluation is being led, per the report, by "Hsu Kuo-chin, a TSMC vice president who oversees advanced packaging and previously worked at Micron."

Nvidia is TSMC's biggest customer, and the DRAM overture is not the only memory-side ask on the table. In October, Nvidia reportedly asked Samsung, SK Hynix and Micron to fabricate the base layer of its custom HBM memory on TSMC's 3nm process. Micron has said it expects the AI-driven memory shortage to persist into 2028.

A move into DRAM would mark a sharp departure from the foundry-only model TSMC founder Morris Chang built the company around. Chip stories have dominated our Chips coverage over the past quarter, including a Korean exchange halt during an AI-sector rout.