TSMC secures 5nm AI chip orders from Microsoft

TSMC has received AI chip orders from major cloud service providers (CSP), including Microsoft's 5nm chip orders, according to industry sources.

This custom-designed processor, boasting 105 billion transistors and manufactured on a 5-nanometer TSMC process, is a powerhouse tailored for large language model training and inference in the cloud.

The new strategy hints at reducing dependence on Nvidia while adding more flexibility to its Azure services. While Microsoft is tight-lipped about direct performance comparisons, the chip is expected to challenge Nvidia's H100 GPUs that have dominated the market.

Microsoft's first complete liquid-cooled server processor is expected to not only enhance server density but also seamlessly fit into existing data center footprints, allowing fast deployment. The company also announced a commitment to share its MX data types and rack designs with competitors, fostering a collective effort within the industry.

$Taiwan Semiconductor Manufacturing(TSM)$  $NVIDIA Corp(NVDA)$ $Microsoft(MSFT)$ $Advanced Micro Devices(AMD)$