How is Nvidia diversifying AI chip manufacturing internationally?

Nvidia signed a multi-year manufacturing arrangement with Samsung Foundry to diversify production beyond TSMC, with analysts pointing to 3nm-class capacity. The company is also working to secure more high-bandwidth memory from SK Hynix and U.S. operations, reflecting how HBM has become the key constraint for AI systems. Nvidia leadership visited Seoul in December to discuss HBM volumes, highlighting a focused push to stabilize supply ahead of 2026 deployments.

What progress did India make on semiconductor capacity tied to AI?

India cleared additional semiconductor proposals in December, including cross-border projects involving Tata Group and Taiwan’s Powerchip Semiconductor Manufacturing Corp. These plans target fabrication and advanced packaging aligned to AI workloads, underpinned by incentives designed to attract foreign partners and capital. The initiative strengthens India’s role in the AI chip value chain, from module assembly to memory stacking, with the aim of regional deployment and export.

How do export controls affect cross-border AI chip expansion?

Export controls reshape equipment deliveries and chip shipment plans. Dutch policy changes tightened ASML export licenses for certain China-bound tools, affecting timelines for nodes and components relevant to AI accelerators. In parallel, U.S. rules define performance thresholds and interconnect criteria for China-bound AI processors. These measures spur companies to diversify manufacturing locations and tailor product variants for compliance, influencing availability, costs, and regional strategy.

What are the strategic implications for AI chip supply in 2026?

Firms are distributing risk across Japan, Germany, India, South Korea, and the U.S., coordinating wafer, memory, and packaging capacity to support AI accelerators. Procurement strategies will prioritize multi-foundry arrangements, guaranteed HBM supply, and strict regulatory compliance. As new facilities ramp and memory expansions bear fruit, availability should improve, though HBM may remain tight. Companies plan staggered deployments aligned with subsidy-backed schedules and diversified partners to stabilize delivery across regions.

TSMC Expands Japan And Europe Projects As Nvidia Signs Samsung Foundry Pact

Q: What cross-border AI chip projects did TSMC advance recently?

In the past 45 days, TSMC advanced initiatives in Japan and maintained momentum on its Germany joint venture. In Japan, TSMC and partners Sony and Denso progressed planning for a second Kumamoto fab, supported by Japan’s subsidy framework, according to Reuters. In Germany, the ESMC JV with Bosch, Infineon, and NXP continued to move forward under the subsidy regime. These efforts aim to diversify capacity and support AI accelerator ecosystems with regional resilience.

TSMC advances cross-border fab plans in Japan and Europe while Nvidia moves to diversify manufacturing with Samsung Foundry. India clears new semiconductor projects tied to AI chips, and export controls reshape China-bound shipments, signaling a reshaped global expansion landscape.

Published: January 8, 2026 By James Park Category: AI Chips

TSMC Expands Japan And Europe Projects As Nvidia Signs Samsung Foundry Pact

Executive Summary

TSMC advances new fabs in Japan and Germany, with government support shaping timelines and budgets Reuters reports.
Nvidia signs a multi-year manufacturing arrangement with Samsung Foundry to diversify AI chip production Bloomberg reports.
India clears additional semiconductor projects involving cross-border partners focused on AI chip ecosystems Reuters.
Dutch export licenses further tighten China-bound equipment shipments, impacting AI chip supply chains Reuters notes.

Asia–Europe Expansion Led by TSMC TSMC is accelerating cross-border expansion with additional investment and partner commitments in Japan, where the company and partners Sony and Denso are advancing talks around a potential second fab in Kumamoto to bolster advanced logic and specialty capacity, supported by Japan’s subsidy framework according to Reuters. The moves aim to underpin AI chip supply security across East Asia and serve global customers including Nvidia and Apple.

In Europe, TSMC’s planned Dresden facility through the ESMC joint venture—alongside Bosch, Infineon, and NXP—continues to progress under Germany’s subsidy regime, with timetable and scope updates emerging in late 2025 Reuters reported. While most AI accelerators today are fabbed in Taiwan, these cross-border projects aim to diversify geographic risk and strengthen regional capacity for AI-adjacent components such as high-speed I/O and specialty logic used in accelerator boards industry coverage via Reuters.

Nvidia Diversifies Manufacturing And Memory Supply Nvidia is moving to diversify manufacturing beyond TSMC, signing a multi-year arrangement with Samsung Foundry...

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