TSMC’s 2nm Technology Gains Momentum with MediaTek, Backed by Investments from Nvidia and Alphabet
MediaTek launched its Dimensity 9600 Pro chip using TSMC's advanced 2-nanometer process on September 15. This marks a significant step in the adoption of TSMC’s newest node beyond Apple-class customers into flagship mobile silicon, with MediaTek also securing $3.5 billion in financing from Nvidia and forming broader partnerships for AI chips and automotive applications. Nvidia's investment includes convertible bonds and an expanded partnership to integrate MediaTek custom XPUs with its NVLink Fusion systems. Alphabet participated in a related bond sale as well. TSMC’s 2nm process contributed 3% of wafer revenue in Q2, with management expecting strong growth in the second half despite potential margin dilution from production costs. The strategic move positions TSMC to benefit from both GPU and custom-silicon demand while Nvidia seeks to maintain its ecosystem influence. However, there is a risk as MediaTek becomes more competitive in supplying custom accelerators that could shift workloads away from Nvidia GPUs.
Topics: 2nm technology AI chips MediaTek NVIDIA investment TSMC