> ## Content Index > Fetch the complete content index at: https://bytevyte.com/llms.txt > Use this file to discover other available public pages before exploring further. # TSMC Weighs 3D DRAM Production for Nvidia, Then Stresses Foundry Focus - URL: https://bytevyte.com/tsmc-3d-dram-nvidia-request/ - Published: 2026-11-09T15:01:30.000Z - Updated: 2026-11-09T15:01:30.000Z - Description: TSMC has reportedly drafted 3D DRAM plans at Nvidia's request, but it publicly says it stays focused on foundry. No production or investment decision yet. - Author: Bytevyte Editorial - Tags: ai-beats **TAIPEI / LONDON (BYTEVYTE):** According to reports, TSMC has started preparing a proposal to produce **3D DRAM** for Nvidia, which buys more from it than any other client. The company has since stated in public that its focus stays on core chip fabrication work, so the memory effort remains at the planning stage with no announced investment or production date. Reports published on November 6 name Hsu Kuo-chin, who oversees advanced packaging at TSMC, as the person directing the drafting effort. The options under consideration reportedly include building new fabrication facilities or buying an existing plant and converting it. Neither option has been chosen, and no capital commitment or production timeline has been reported. 3D DRAM stacks memory cells vertically to raise capacity per chip instead of spreading them across a flat surface. Samsung Electronics, SK hynix and Micron are already developing the technology, so a TSMC entry would add a new competitor to the three companies that lead the DRAM market. ## Why Nvidia wants a second 3D DRAM source The pressure behind the request is memory scarcity. AI data centers absorb large volumes of memory, and prices have risen as supply tightens. Micron reportedly expects the shortage to last into 2028, a timeline that makes reliance on three suppliers a concentrated risk for any large chip designer. Nvidia has also reportedly approached Samsung, SK hynix and Micron about constructing the foundation of its bespoke HBM on TSMC's 3nm process, which would tie TSMC to memory production without requiring it to make DRAM itself. TSMC has the financial room for a large memory project. Its third-quarter 2026 revenue was reportedly $46.72 billion, with a gross margin of 66.4%, and high-performance computing accounted for 68% of sales. TSMC also controls over 70% of the worldwide contract chip manufacturing market and is pivotal to producing Nvidia's GPUs and to advanced packaging. ## Why TSMC's public response matters TSMC's public statement points the other way. The company said its attention is on its primary foundry operations and that serving the worldwide logic chip sector remains its purpose. That position leaves the 3D DRAM work as an unconfirmed option rather than a strategic shift. The obstacles are technical and commercial. Logic chips and DRAM rely on distinct production methods, which calls for separate process development and separate production facilities. Coverage notes that TSMC has not built sufficient specialized DRAM capability on its own, and that even acquiring a memory maker would demand years of development and billions of dollars in investment. Patent and process barriers add to the load. Customer relationships are a further constraint. Producing DRAM would put TSMC in direct competition with Samsung, SK hynix and Micron, which are existing partners in advanced packaging and high-bandwidth memory. TSMC has previously produced commodity memory chips, however, so the option has not been ruled out in the long term. ## What to watch For memory buyers, the near-term effect is limited, because no capacity, timeline or capital commitment has been reported. For Nvidia, the request signals that supply diversification has become a priority while the shortage persists. Any capital spending announcement, chosen production approach or target date from TSMC would show whether the project is moving from planning into execution. *While we strive for accuracy and rigor, ByteVyte can make mistakes. Readers are advised to verify all information independently and conduct due diligence before making decisions based on this reporting. We accept no liability for errors, omissions, or decisions made in reliance on this content.* ## Sources [3DFX INTERACTIVE INC - Form 425 - FY2001](https://www.sec.gov/Archives/edgar/data/0001010026/000101287001000872/0001.txt?ref=bytevyte.com) [NVIDIA CORP/CA - Form S-4/A - FY2001](https://www.sec.gov/Archives/edgar/data/0001045810/000101287001000538/0001.txt?ref=bytevyte.com) Photo by [Brecht Corbeel](https://unsplash.com/@brechtcorbeel?utm%5Fsource=bytevyte&utm%5Fmedium=referral) on [Unsplash](https://unsplash.com/?utm%5Fsource=bytevyte&utm%5Fmedium=referral) ## Related Articles - [TSMC Q3 2026 Revenue Sets NT$1.49 Trillion Record as AI Supply Stays Tight](https://bytevyte.com/tsmc-q3-2026-revenue-sets-nt-1-49-trillion-record-as-ai-supply-stays-tight/) - [Nvidia Pitches Full-Stack Codesign as AI Memory Pressure Rises](https://bytevyte.com/nvidia-ai-memory-pressure-codesign/) - [CXMT G5 DRAM Mass Production Reshapes Commodity Memory, Not AI Supply](https://bytevyte.com/cxmt-g5-dram-mass-production-reshapes-commodity-memory-not-ai-supply/) ✔Human Verified --- *Researched and cross-referenced against primary sources by the Bytevyte editorial team. This article was generated with the assistance of artificial intelligence and reviewed by the Bytevyte editorial team.*