Nvidia (NVDA, Financials) CEO Jensen Huang revealed that thanks to Taiwan Semiconductor Manufacturing Company (TSM, Financials), a design fault in its Blackwell AI chips—which affected production—has been fixed.
Following the revelation, Nvidia's shares dropped almost 2% in early trade, Reuters said.
Aiming to launch the Blackwell chips in the second quarter, Nvidia debuted them in March but delays happened, perhaps impacting consumers like Meta Platforms, Alphabet's Google, and Microsoft, Reuters said.
"We had a design flaw in Blackwell," Huang reportedly told Reuters. "It was functional, but the design flaw caused the yield to be low. It was 100% Nvidia's fault," he noted. Media sources claimed that tensions between Nvidia and TSMC had resulted from manufacturing delays; nonetheless, Huang dismissed such claims as "fake news."
"In order to make a Blackwell computer work, seven different types of chips were designed from scratch and had to be ramped into production at the same time," Huang said. "What TSMC did, was to help us recover from that yield difficulty and resume the manufacturing of Blackwell at an incredible pace."
Nvidia's Blackwell chips combine two silicon squares into a single component that increases processing performance for jobs like chatbot answers by thirty times; the chips should arrive in the fourth quarter.
