Nvidia is said to be preparing funds of USD 10 billion to pay the cost of producing chips to TSMC.
Specifically, the funds were set up to manufacture chips using TSMC's N5 (5nm) process. Especially so that Nvidia is given a share of TSMC's limited production capacity and has been ordered by Bitmain, AMD, and Apple.
The chip that will be produced with the 5nm process is probably the GeForce RTX 4000 series (Ada Lovelace). This architecture is said to be much faster and more power hungry than the Ampere architecture that was previously used.
But the main problem is of course limited chip production capacity, and Nvidia has many competitors who also want to produce chips with these fabrications.
In the Ampere architecture on the RTX 3000, Nvidia uses Samsung's services to produce the 8nm chip. The RTX 3000 series is known as a power-hungry GPU, and Nvidia is reportedly getting a chip that lacks quality for the series, as quoted by Techspot, Tuesday (22/2/2022).
For this reason, the use of a smaller fabrication (5nm) may be able to help overcome this problem. However, this 5nm chip made by TSMC is somewhat more expensive, which may have an impact on the price of a higher graphics card.
With the news of the emergence of competing GPUs from Intel, namely Arc Alchemist, Nvidia may have to ensure the availability of its graphics cards so that its market does not erode.
Nvidia did not spend USD 40 billion to acquire Arm because the planned acquisition has now been cancelled.
SoftBank announced this cancellation in a statement. "Nvidia and SBG (SoftBank Group) have agreed to cancel the agreement on February 8, 2022 due to major regulatory issues that hinder the realization of the transaction despite both parties showing good faith," SoftBank wrote in a statement.