Industry people are paying attention to Nvidia possible changes in orders amid recent controversies involving its leaders. Why is it important? Because it could bring power change in the high-end semiconductor manufacturer industry. Although current production line impact seems to be limited, long-term supply chain situation is changing.
TrendForce report suggests order cuts due to CEO controversy, though industry sources dispute immediate impact
TrendForce shares that Nvidia may cut down its orders because of the personal controversy involving Jensen Huang. They say that should the controversy grow, then it could scale down its procurement. Though industry sources clarify that it is not true, current orders and production allocation are not changed. Shipments of chassis and cooling systems are all normal, the industry sources say.
If it is really true that Nvidia cut down its orders, it will mean something for TSMC and its rival companies. It could mean TSMC will feel less pressure to manufacture if Nvidia cut its orders. This will probably open up new possibilities for its rivals, like Broadcom, Mediatek and AMD.
Mediatek will invest $16 billions to develop AI accelerator for 2027 release. AMD is now looking for extra production capacity to answer the high demand for data center.
To sum it up, it shouldn't affect Nvidia much in the long run. Rumors of such aren't affecting current production schedules. Competitors are ready to take the extra capacity that becomes free. We'll just have to see if the rumors about order cuts will become true or if things will stay the same.
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