TSMC weighs move into advanced memory with 3D DRAM plans at Nvidia's request

Taiwan Semiconductor Manufacturing Co is considering expanding into advanced memory chip production and has begun drawing up plans for a type of memory called 3D DRAM, at the request of its biggest customer, Nvidia, The Information reported on Friday, November 6. Reuters, citing the report, said the information came from two people with direct knowledge of the matter. TSMC and Nvidia did not immediately respond to Reuters' requests for comment.

The options under consideration

TSMC could build new factories for advanced memory chips, or acquire an existing plant and convert it for memory production, similar to Micron's move this year to buy a fab and convert it for DRAM output. The report gave no timeline for when production could begin and no investment or capacity figures. The push is led by Hsu Kuo-chin, a vice president who oversees advanced packaging at TSMC.

What is 3D DRAM

DRAM is the working memory that temporarily stores data while a processor runs. 3D DRAM stacks memory cells vertically so more capacity fits in the same area. It differs from high-bandwidth memory (HBM), used with AI processors today, which stacks separate DRAM dies into one package; 3D DRAM builds the layers inside a single die. Samsung, SK Hynix and Micron dominate memory manufacturing and are all developing 3D DRAM. SK Hynix's roadmap has listed 3D DRAM for around 2030, while Micron has placed it between two future process generations.

Shortage lifts prices, and markets react

A severe, AI-driven shortage of memory chips has pushed up prices and sent chip designers scrambling for additional supply. The reporting says Nvidia and Apple are both looking for more sources. After the news broke, TSMC's US-listed shares traded up about 6% at $374.17 around midday on Friday, while Nvidia rose about 3.5% to $187.94.

What comes next

For now everything remains at the "considering" stage: TSMC has announced no plan and committed to no timetable. Even if it proceeds, building fabs and reaching volume production would take years, and it would face direct competition from Samsung, SK Hynix and Micron. The market will now watch whether TSMC formally confirms a plan, and whether Nvidia shifts more memory orders to suppliers beyond the established three.

(File photo: a TSMC fabrication plant.)