TSMC deepens its partnership with Nvidia by naming Nvidia the exclusive customer for the upcoming A16 process node, designed for AI and HPC, with joint testing underway and production slated for the second half of 2026.

This exclusive manufacturing agreement places Nvidia at the center of TSMC's AI and high-performance computing chip supply chain.

TSMC stock was up 0.21% in premarket trading on Monday, trading around $301.05.

TSMC commits an initial $49 billion investment to build four new facilities in Taiwan, aiming for commercial production in the second half of 2028 and the creation of 8,000 to 10,000 jobs.

The $49 billion plan targets commercialization of 1.4nm technology in late 2028 and aims to boost Taiwan’s role in the global chip supply chain by expanding employment.

The A14 1.4nm process is expected to deliver chips about 15% faster or 30% more power-efficient than the upcoming 2nm chips entering mass production later this year.

In practical terms, the 1.4nm process could offer roughly 15% speed gains or 30% power savings over the 2nm generation under mass production later this year.

TSMC signals a groundbreaking move toward a 1.4-nanometer production line, signaling potential leadership in global semiconductor manufacturing.

The project aims to establish the world’s largest AI and high-performance computing chip production hub, with foundation bidding already complete.

The A16 node will use nanosheet transistors and SPR (Super Power Rail) systems to boost speed and energy efficiency for AI/HPC workloads.

Early construction for a 1.4-nanometer production line is set to begin next week at Taiwan’s Central Science Park, with four new fabrication plants starting November 5.

Market reaction has been strong, with TSMC stock reaching new all-time highs and posting year-to-date gains exceeding 50% as demand for advanced chips grows.

Nvidia plans to use the A16 process for its Feynman GPU architecture, expected in 2028, with AI chipmakers anticipated to be early adopters of A16.