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Nvidia secures 35k monthly wafers of TSMC N3 capacity for Rubin architecture
Wednesday, December 24, 2025 at 12:27 AM
Nvidia CEO Jensen Huang has reportedly secured 35,000 wafers per month of N3 process capacity from TSMC to support the production of the upcoming Rubin architecture, effectively front-running capacity demand.
Context
Nvidia has solidified its market lead by securing roughly 35,000 monthly wafers of TSMC’s advanced 3nm (N3) process. This strategic move safeguards the supply chain for the upcoming Rubin architecture, expected to launch in 2026. By aggressively booking capacity early, Nvidia leverages its 70% to 80% market share to dictate pricing and front-run future demand. This ensures the company remains unhindered by the manufacturing bottlenecks that typically delay next-generation hardware rollouts.
In contrast, competitors like AMD, Google, and Amazon are facing a supply crunch due to slower production ramps. As TSMC’s leading-edge nodes become fully committed, these firms are left with limited options to scale their custom AI silicon. While some have explored alternatives with Samsung, the sheer volume secured by Nvidia keeps challengers at a significant disadvantage. For investors, this highlights Nvidia’s ability to weaponize its supply chain dominance to maintain a near-monopoly on high-performance AI infrastructure.
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