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1Fix the driver behind crashes, sound loss and screen glitches2Clear out junk files and repair common Windows errors3Scan for outdated or missing drivers - takes under a minuteJensen Huang’s comments point to five connected capabilities behind TSMC’s advantage in advanced chip manufacturing: a production system that coordinates hundreds of customers, a culture focused on process technology, unusually strong customer service, leading-edge engineering, and the trust NVIDIA places in TSMC to execute. The analysis describes a foundry-system advantage, not the disappearance of Samsung from NVIDIA’s supply chain.
What Jensen Huang actually identified
Huang has not published a numbered “five reasons” ranking. The five-part explanation below separates two elements he discussed together: technology focus and customer service. In his description, TSMC is unusual because it combines both while continuing to advance manufacturing technology.
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“Their system, their manufacturing system, is completely miraculous, I would say,” Huang said. He also said TSMC had balanced two qualities at which many companies struggle to excel simultaneously and was “world-class at both.”
The five capabilities behind TSMC’s advantage
1. System-level orchestration
Huang’s first point is operational rather than architectural. TSMC can manage the “dynamic demands of hundreds of companies” as wafer starts change, production is stopped or restarted, emergencies arise and customer schedules move.
That makes the foundry more than a collection of clean rooms and fabrication tools. It functions as a production operating system coordinating many independent chip designers, each with different deadlines, mask sets, packaging plans and forecast changes. The ability to re-sequence work without losing control is difficult to reproduce because it depends on procedures, data, supplier coordination and years of operating experience.
2. Relentless technology focus
Huang described TSMC as advancing manufacturing technology while serving customers at the same time. This focus is a cultural discipline: process development continues even while the company handles demanding production schedules.
For NVIDIA, that matters because a new accelerator generation depends on a manufacturable process, not just a successful circuit design. Process improvements must arrive on a timetable that matches design, validation, packaging and system launches.
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3. Customer-service orientation
TSMC’s second cultural strength is customer service. Huang said the company balances customer needs with “bleeding-edge” technology, a combination he said many businesses do not achieve together.
In a leading-edge foundry relationship, service means more than answering support tickets. It includes coordinating wafer capacity, responding to schedule changes, solving yield and integration problems, and aligning process road maps with a customer’s product plans. Huang’s point is that TSMC treats those responsibilities as part of its manufacturing capability rather than as separate from it.
4. Leading-edge process capability
Huang separately emphasized the difficulty of making advanced chips. As quoted by Tom’s Hardware, he said: “Building advanced chip manufacturing is extremely hard. It is not just build the plant, but the engineering, the science, and the artistry of doing what TSMC does for a living is extremely hard.”
A new fab therefore cannot be judged only by its building, equipment list or announced node name. The hard-to-copy work includes process integration, control of thousands of manufacturing steps, defect reduction, metrology, design enablement and the practical judgment needed to keep a complex line stable at volume.
5. Trust and execution
Huang called trust an intangible capability and made its business impact explicit: “I trust them to put my company on top of them. That’s a very big deal.”
For NVIDIA, that trust reflects confidence that TSMC will protect execution of extremely valuable products through capacity planning, process transitions and production problems. It is accumulated through repeated delivery, engineering cooperation and transparent handling of bad news. Trust does not replace technical performance; it determines whether a chip designer is willing to commit future products to the same manufacturing partner.
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Why the advantage matters to NVIDIA now
The scale of the relationship is set against a market in which advanced-chip demand remains greater than available capacity. The Associated Press reported that TSMC produces more than 90% of the world’s most cutting-edge chips and supplies companies including NVIDIA and Apple. The same report said TSMC gave a 2026 capital-expenditure range of $60 billion to $64 billion, while chairman and chief executive C.C. Wei said AI demand remained above the company’s current supply capability.
NVIDIA and TSMC also announced the first production Blackwell wafer at TSMC’s Arizona Fab 21 using TSMC’s 4N process. Later phases are planned for N3, N2, A16 and A14 technologies. That sequence illustrates why a long-term process relationship matters: NVIDIA is not choosing a single factory for one chip, but building a manufacturing path across several technology generations and locations.
Samsung is still an NVIDIA partner
Huang’s praise for TSMC should not be read as a claim that Samsung lacks advanced capabilities or that NVIDIA has abandoned it. In a 2024 question-and-answer session, Huang said NVIDIA worked with three high-bandwidth-memory partners: SK hynix, Micron and Samsung. He said qualification and integration work was continuing.
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NVIDIA later announced an AI-factory collaboration with Samsung involving more than 50,000 NVIDIA GPUs. The project uses CUDA-accelerated lithography and simulation, digital twins, predictive maintenance and factory automation. Samsung therefore remains important to NVIDIA’s memory supply and industrial-AI strategy even if Huang views TSMC’s foundry operating system as exceptional.
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| Comparison area | What is established about TSMC | What is established about Samsung |
|---|---|---|
| Manufacturing-system orchestration | Huang says TSMC coordinates the changing demands of hundreds of companies, including wafer starts, stops, emergencies and schedule shifts. | A directly comparable orchestration assessment is not stated. |
| Process technology | Huang described TSMC’s technology as special; Blackwell production in Arizona uses 4N, with later phases planned for N3, N2, A16 and A14. | Samsung remains an active advanced-manufacturing and NVIDIA technology partner, but a directly comparable current yield result is not stated. |
| Customer service | Huang specifically praised TSMC’s ability to combine customer service with bleeding-edge technology. | A directly comparable customer-service assessment is not stated. |
| Trust and execution | Huang said he trusts TSMC to put NVIDIA’s products on top of its manufacturing platform. | Samsung’s continuing qualification and integration work with NVIDIA demonstrates an ongoing relationship, but no equivalent Huang trust statement is provided. |
| HBM and packaging relationships | TSMC manufactures NVIDIA’s advanced logic products and is involved in the Blackwell production path described above. | Samsung is one of NVIDIA’s three HBM partners; the cited material does not establish a numerical packaging comparison. |
| Capacity and scale | AP reported more than 90% of the world’s most cutting-edge chips and TSMC’s $60 billion–$64 billion 2026 capital-expenditure range. | A directly comparable current capacity figure is not stated. |
| Geographic resilience | Blackwell production has begun at Arizona Fab 21, adding a U.S. manufacturing location. | Samsung’s announced AI factory with NVIDIA shows industrial collaboration, but a directly comparable geographic-resilience metric is not stated. |
What “beating Samsung” does—and does not—mean
In this context, “beating” describes TSMC’s overall foundry system as Huang experiences it: the combination of scale, process development, customer coordination and dependable execution. It does not establish that Samsung is incapable of making advanced chips, nor does it prove that TSMC wins every individual process metric.
The available evidence does not provide a current, same-node numerical yield comparison between TSMC and Samsung. Presenting one would imply a level of measurement that has not been established here. Huang’s argument is broader: advanced manufacturing is a system, and TSMC’s system is the one he trusts for NVIDIA’s leading products.
The practical takeaway for NVIDIA’s supply chain
NVIDIA benefits from maintaining more than one strategic relationship. TSMC provides the leading-edge logic foundry platform Huang described, while Samsung remains a qualified HBM supplier and a collaborator on a large AI-factory deployment. That division reduces the risk of treating semiconductor manufacturing as a single interchangeable commodity.
TSMC’s edge, according to Huang, comes from making the entire operating model work together: technology road maps, factory execution, customer responsiveness and trust. Those mutually reinforcing capabilities explain why simply building a competing fab does not automatically reproduce TSMC’s results.
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