Nvidia has to spend billions of dollars to book TSMC manufacturing facilities.
Previously, it was reported that Nvidia had already paid about $5 billion, but now it is reported that in the last quarter alone, the company spent $9 billion on stock purchases and an advance payment to TSMC!
Nvidia paid $6.9 billion in the third quarter. For comparison, a year earlier, payments amounted to only 2.54 billion. Here it is worth clarifying that not all of this is money for TSMC – it is also the cost of purchasing scarce components.
As for TSMC directly, the source says that Nvidia paid the partner $1.64 billion last quarter, and the company is due to pay another $1.79 billion this quarter. But in total, the company will pay about $10 billion to TSMC alone.
GeForce RTX 40 graphics cards, for which TSMC will produce GPUs using the 5 nm process technology, are expected in the fall. Unfortunately, all these prepayments from Nvidia do not mean at all that the new line of video cards will not be in short supply.
Source: ixbt
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