OpenAI reportedly booked TSMC's A16 process for manufacturing AI chips
Key Points
- Industry sources report that OpenAI plans to develop its own AI chips to meet the growing computational demands of its AI models. The company has reserved initial production capacity for TSMC's new Angstrom-class A16 manufacturing process.
- OpenAI is partnering with US firms Broadcom and Marvell to design these custom chips. Earlier discussions about building a dedicated TSMC fab for OpenAI were shelved after TSMC CEO C.C. Wei deemed OpenAI CEO Sam Altman's proposals "too aggressive."
- The ASIC (Application-Specific Integrated Circuit) chips for OpenAI will be manufactured using TSMC's 3nm family of processes, followed by the more advanced A16 process. The A16 node represents TSMC's first foray into Angstrom-scale chip manufacturing.
Industry sources say OpenAI has reserved initial production capacity for TSMC's new Angstrom A16 manufacturing process to develop custom AI chips.
The company is reportedly investing in proprietary ASIC (Application-Specific Integrated Circuit) designs to meet growing computational needs for its AI models.
Now, Taiwan's Economic Daily reports OpenAI will likely partner with US firms Broadcom and Marvell on chip development. OpenAI is set to become one of Broadcom's top four customers. Broadcom is also working on AI chips with ByteDance and Google; however, that might change.
As longtime TSMC clients, Broadcom and Marvell will manufacture OpenAI's ASIC designs using TSMC's 3nm and subsequent A16 processes. Mass production is slated to begin in Taiwan in late 2026. OpenAI has already reserved A16 production capacity for this effort, Economic Daily reports, citing industry circles.
Earlier plans for a dedicated OpenAI chip factory with TSMC are on hold. TSMC CEO C.C. Wei called OpenAI CEO Sam Altman's proposals "too aggressive," citing concerns about facility utilization rates.
Apple among first customers for TSMC's A16
Apple has also secured early access to TSMC's A16 process for future iPhones. While Apple and OpenAI collaborate on Apple Intelligence, their partnership currently focuses on software.
In January 2024, reports surfaced that Altman was planning a global chip manufacturing network, with TSMC among potential partners. One of the investors in such a massive project could be Abu Dhabi's MGX.
AI News Without the Hype – Curated by Humans
As a THE DECODER subscriber, you get ad-free reading, our weekly AI newsletter, the exclusive "AI Radar" Frontier Report 6× per year, access to comments, and our complete archive.
Subscribe now