However, entering DRAM manufacturing would expose TSMC to substantial market risks. Memory shortages frequently encourage capacity expansions that eventually create oversupply, depressing prices and profitability. Such uncertainty could surely make TSMC think twice before going down the DRAM route. Furthermore, entering the DRAM business could also complicate TSMC's relationship with large DRAM makers in general, and SK Hynix, which partnered with the foundry in 2024 to manufacture logic base dies for next-generation HBM products, in particular.
TSMC’s potential entry into DRAM manufacturing could also raise antitrust questions, particularly if the company combines its dominant position in leading-edge logic manufacturing, leading position in advanced chip packaging, and ramping memory production. Regulators could examine whether such vertical integration would enable TSMC to favor its own memory products or disadvantage competitors that lack such a vertical integration. Then again, in-house DRAM development by TSMC could also strengthen competition by introducing another supplier into a market dominated by just three manufacturers.
Yet, TSMC does not necessarily need to manufacture DRAM to capitalize on growing demand for advanced memory. Instead, it could capture a larger share of the value generated by DRAM by producing sophisticated logic base dies for HBM, integrating memory with processors using its SoIC hybrid bonding technology, and developing customized memory solutions with partners such as GUC and established DRAM manufacturers. This approach would allow TSMC to expand its presence in the advanced memory market without investing billions of dollars in developing competitive DRAM process technologies from scratch and/or building additional fabs for tens of billions of dollars.
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Anton Shilov Social Links Navigation Contributing Writer Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/pc-components/dram/SPONSORED_LINK_URL
- https://www.tomshardware.com/pc-components/dram/tsmc-denies-exploring-3d-dram-at-nvidias-request-advanced-memory-tech-is-still-years-from-market-viability#main
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