Nvidia is rumored to be planning to pay USD 10 billion in order to offset the cost of creating chips for TSMC.
Specifically, the funds were put up to build devices utilizing TSMC's N5 (5nm) process. Especially so since Nvidia has been allocated a piece of TSMC's restricted production capacity and has been ordered by Bitmain, AMD, and Apple.
The first chip that will be made with the 5nm process is possibly the GeForce RTX 4000 series (Ada Lovelace) (Ada Lovelace). This design is supposed to be quicker and more power-hungry than the Ampere architecture that was previously employed.
But the primary challenge is, of course, limited chip production capacity, and Nvidia has many competitors that also want to develop chips with similar fabrications.
In the Ampere architecture on the RTX 3000, Nvidia employs Samsung's services to create the 8-nm chip. As described by Techspot on Tuesday (2/22/2022), the RTX 3000 series is renowned as a power-hungry GPU, and Nvidia is apparently obtaining a chip that lacks quality for the series.
For this reason, the use of smaller manufacturing (5 nm) may be able to help solve this challenge. However, this 5nm chip built by TSMC is somewhat more expensive, which may have an impact on the price of a better graphics card.
With the news of the debut of competitor GPUs from Intel, particularly Arc Alchemist, Nvidia may have to increase the availability of its graphics cards so that its market share does not diminish.
Nvidia did not invest USD 40 billion to acquire Arm because the planned acquisition has now been terminated.
SoftBank announced this cancellation in a statement. SoftBank announced in a statement that "Nvidia and SBG (SoftBank Group) have agreed to cancel the agreement on February 8, 2022 due to severe regulatory obstacles that obstruct the execution of the deal despite both parties' displaying good faith."