alt Hacker NewsIf they believed they were going to continue selling AI chips at those margins they would:
- outbid Apple on new nodes
- sign commitments with TSMC to get the capacity in the pipeline
- absolutely own the process nodes they made cards on that are still selling way above retail
NVIDIA has been posting net earnings in the 60-90 range over the last few years. If you think that's going to continue? You book the fab capacity hell or high water. Apple doesn't make those margins (which is what on paper would determine who is in front for the next node).
And what if Nvidia booked but the order didn't come. What if Nvidia's customer isn't going to commit? How expensive and how much prepayment is needed for TSMC to break a new Fab?
These are the same question Apple Fans asking Apple to buy TSMC. The fact is isn't so simple. And even if Nvidia were willing to pay for it TSMC wouldn't do it just for Nvidia alone.