Nvidia Unloads New Strategy: Blackwell Technology Ready To Change AI Industry!

Nvidia CEO Jensen Huang revealed his company's new strategy. (photo: x @NVIDIAAIDev)

Nvidia's demand for advanced packaging technology from TSMC remains high, although the type of technology needed is starting to change, Nvidia CEO Jensen Huang said on Thursday, January 16. This statement answers speculation about the possible reduction of company orders.

Nvidia's latest artificial intelligence (AI) chip, Blackwell, uses advanced packaging technology "chip on wafer on substrate" (CoWoS) offered by Taiwan Semiconductor Manufacturing Co (TSMC), the main chipmaker Nvidia.

"When we turn to Blackwell, we'll use more CoWoS-L. Of course, we're still producing us, and Time will use CoWoS-S. We'll also shift CoWoS-S capacity to CoWoS-L," Huang said on the sidelines of a Siliconware Precision Industries chip supplier event in Taichung, Taiwan.

According to Huang, this change does not mean a reduction in capacity, but an increase in capacity for CoWoS-L. This is Nvidia's GPU architecture platform before Blackwell was announced in March 2024.

So far, Nvidia has relied mostly on CoWoS-S technology to combine its AI chips. However, TF International Securities analyst Ming-Chi Kuo said Nvidia is now shifting its focus to newer technologies, CoWoS-L, which could affect its suppliers.

Taiwanese media also reported that Nvidia was reducing orders from TSMC's CoWoS-S, which could potentially affect chip company revenues.

Huang said Nvidia had sold its Blackwell chips as quickly as TSMC could produce them, although packaging technology remains an obstacle due to capacity constraints. However, the current state-of-the-art packaging capacity has increased "possibly four times" compared to two years ago.

Huang did not comment on new export restrictions from the US limiting AI chip exports to most countries, except US close ally groups such as Taiwan.

Huang, who was born in Tainan, Taiwan's historic capital, before moving to the US at the age of nine, remains a very popular figure in Taiwan, with every move always followed by local media. He is scheduled to attend Nvidia Taiwan's annual New Year's party in Taipei this week.