💸 TSMC’s New $165B Bet on U.S. Soil
Welcome, AI & Semiconductor Investors,
TSMC just unveiled a massive $165 billion commitment to advanced semiconductor manufacturing in the U.S., marking the largest foreign direct investment in American history—strengthening its critical role in the AI and semiconductor landscape.
We also dive into NVIDIA's bold vision for revolutionizing healthcare through AI-driven solutions and explore Marvell’s cutting-edge leap to 2nm silicon ahead of its key earnings report.— Let’s Chip In
What The Chip Happened?
💸 TSMC’s New $165B Bet on U.S. Soil
🚀 Marvell’s 2nm Leap: Accelerating Infrastructure for the AI Era
🧬 NVIDIA Eyes Healthcare Revolution
[Accelerated AI Meets Modern Medicine: NVIDIA’s Bold Vision for Healthcare]
Read time: 7 minutes
TSMC (TWSE: 2330, NYSE: TSM)
💸 TSMC’s New $165B Bet on U.S. Soil
What The Chip: TSMC just announced it will expand its U.S. investment in advanced semiconductor manufacturing to a total of $165 billion, marking the largest single foreign direct investment in U.S. history. This expansion includes three new fabs, two advanced packaging facilities, and a major R&D center in Arizona.
Details:
🔎 Massive Expansion: TSMC is adding $100 billion to its ongoing $65 billion investment, aiming to boost American production of advanced semiconductor tech for AI and other cutting-edge applications.
🏗️ Job Creation: The company expects to create 40,000 construction jobs over the next four years and tens of thousands of high-tech positions at the new fabs and R&D facilities.
💡 Leadership Quotes: “With the success of our first fab in Arizona, along with needed government support and strong customer partnerships, we intend to expand...bringing our total planned investment to $165 billion,” said TSMC Chairman and CEO Dr. C.C. Wei.
📉 Margin Headwinds: According to TSMC’s last earnings call, overseas expansions could dilute margins by 2-3% due to ramp-up costs. CFO Jen-Chau Huang also warned of higher electricity prices and inflation impacting next year’s profitability.
💰 CapEx Outlook: TSMC’s 2025 capital budget is projected at $38-42 billion, with about 70% focused on advanced process technologies. This big spending is driven by growth expectations in AI, HPC, and 5G.
🤔 Investor Questions: Are these expenses part of the previously mentioned CapEx increase or additional spending still to come? And how will rising costs—both overseas and at home—ultimately affect TSMC’s long-term margin goals?
Why AI/Semiconductor Investors Should Care: This expansion further cements TSMC’s leadership in next-gen chip manufacturing, especially crucial for AI and HPC workloads. It also underscores the geopolitical push for a more resilient U.S. semiconductor supply chain. As TSMC navigates rising costs and margin pressures, investors will want to track how effectively the company balances global expansion with profitability.
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Marvell (NASDAQ: MRVL)
🚀 Marvell’s 2nm Leap: Accelerating Infrastructure for the AI Era
What The Chip: Marvell just showcased its first 2nm silicon IP—produced on TSMC’s cutting-edge node—aimed at transforming the performance and efficiency of next-generation AI and cloud infrastructure. This platform is expected to help hyperscalers supercharge their data centers, right as Marvell gears up for its earnings release on March 5.
Details:
⚙️ Industry-First 2nm Silicon: The new IP, built on TSMC’s 2nm process, is set to power custom AI accelerators, CPUs, and advanced networking. Marvell’s Chief Development Officer, Sandeep Bharathi, credits their “longstanding collaboration with TSMC” for unlocking leading-edge transistor density and efficiency.
⚡ Building Block Approach: Marvell’s platform includes high-speed SerDes, 2D and 3D die-to-die interconnects, HBM compute architecture, and system-on-chip fabrics. This flexible, modular design should help cloud providers adapt rapidly to the growing demands of AI applications.
🔌 3D Simultaneous Bi-Directional I/O: Operating at up to 6.4 Gbits/second, this breakthrough interconnect technology doubles bandwidth or halves I/O connections, enabling taller chip stacks. Expect more complex, powerful devices that still behave as single chips.
📈 Market Growth Potential: With a projected 45% total addressable market growth annually for accelerated compute, custom silicon may capture as much as 25% of that market by 2028, signifying a large opportunity for Marvell’s platform.
✅ Track Record on Advanced Nodes: From 5nm to 3nm and now 2nm, Marvell has consistently led in bringing advanced process technologies to market. Its 3nm products are already shipping and in development, showcasing a strong pipeline.
🏦 Earnings on the Horizon: The company will release its Q4 and FY25 results on March 5. This upcoming announcement will give investors a closer look into how these technology bets and partnerships might impact Marvell’s financial trajectory.
Why AI/Semiconductor Investors Should Care: Marvell’s 2nm platform signifies a major step forward for data centers looking to handle ever-increasing AI workloads more efficiently. This breakthrough could expand the company’s market share in AI and cloud infrastructure, laying the groundwork for long-term growth. As Marvell reports earnings shortly, investors will be watching closely to see how these innovations translate into near-term results and long-term competitiveness.
NVIDIA Corporation (NASDAQ: NVDA)
🧬 NVIDIA Eyes Healthcare Revolution
What The Chip: NVIDIA’s VP of Healthcare, Kimberly Powell, took the stage at the TD Cowen 45th Annual Healthcare Conference to discuss how the company’s AI platforms are reshaping health care. From digital biology to digital health, NVIDIA is channeling its data center solutions and GPU horsepower into one of the world’s largest industries—and it might be bigger than many think.
Details:
🤖 Accelerated Computing Beyond Semiconductors: “We build computers that solve problems no other computers can,” said Powell. She emphasized that NVIDIA isn’t just a chipmaker anymore—it offers full-stack data center solutions, including CPUs, GPUs, and networking technologies, all designed to handle demanding AI workloads.
🔬 $10 Trillion Healthcare Opportunity: Health care spending is massive, with around 30% tied to labor, labs, and infrastructure. Powell described how AI can fill critical labor gaps. She noted, “AI has to help. It’s a bit existential in that way,” underscoring just how large and urgent this market is.
🧬 Digital Biology in Full Swing: With over $300 billion spent on pharmaceutical R&D each year, NVIDIA’s BioNeMo platform helps drugmakers leverage large language models for drug discovery. Powell highlighted a recent collaboration: “We helped build the world’s largest biology foundation model…trained on some 9 trillion nucleotides.” She believes AI-driven workflows could cut multi-year discovery cycles down to mere months.
🤝 Agentic AI Meets Digital Health: Powell introduced the idea of “hiring digital humans,” where Hippocratic AI and others are launching on-demand AI services to reduce physician workloads. Hospitals can deploy digital assistants to handle scheduling, answer patient questions, and free up clinicians to focus on care.
⚠️ Regulatory & Adoption Hurdles: While the FDA is making strides in approving AI-driven solutions, the rapid pace of innovation is a challenge. Powell noted, “Nobody has seen this pace of innovation in 100 years,” underscoring the need for ongoing dialogue among regulators, tech innovators, and health care providers.
Why AI/Semiconductor Investors Should Care: Healthcare is a trillion-dollar frontier for AI-driven transformation, offering a massive market for advanced computing solutions. As hospitals and drugmakers adopt foundation models and robotics, NVIDIA’s full-stack approach could open new revenue streams. With AI’s growing momentum in health care, investors can track how NVIDIA’s deep ties in both hardware and software ecosystems could capture significant value in this emerging digital revolution.
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Disclaimer: This article is intended for educational and informational purposes only and should not be construed as investment advice. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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[Paid Subscribers] Accelerated AI Meets Modern Medicine: NVIDIA’s Bold Vision for Healthcare
Executive Summary
*Reminder: We do not talk about valuations, just an analysis of the earnings/conferences
NVIDIA Corporation recently appeared at the TD Cowen 45th Annual Healthcare Conference, where Kimberly Powell, Vice President of Healthcare at NVIDIA, outlined a striking roadmap for artificial intelligence (AI) in the healthcare industry. Although NVIDIA is historically known as a semiconductor maker, Powell emphasized that the company now provides “full stack data center solutions,” encompassing graphics processing units (GPUs), central processing units (CPUs), networking, and software.
During the session, Powell shared details about NVIDIA’s latest GPU architecture, code-named Blackwell, and explained how the company views healthcare as a major beneficiary of AI breakthroughs. She cited a global healthcare industry valued at approximately $10 trillion, where nearly 30% of that spend is tied to labor, labs, and infrastructure. Powell noted that “AI has to help,” highlighting that the health sector is tens of millions of clinical workers short, which equates to trillions of dollars in unmet needs. By leveraging specialized AI computing, NVIDIA aims to enable next-generation drug discovery, digital diagnostics, robotics-assisted surgery, and patient-facing “digital humans” (virtual assistants). Powell called these overlapping focus areas “digital devices,” “digital biology,” and “digital health.”
Against the backdrop of a rapidly evolving AI market, Powell’s insights offered a deep look at the maturity of healthcare AI applications and a glimpse of the future for NVIDIA’s broader business. As she said: “We build computers that solve problems no other computers can,” a bold statement that underscores NVIDIA’s mission to transform patient care, drug discovery, and clinical workflows.
Growth Opportunities
NVIDIA’s growth in healthcare rests largely on three converging opportunities:
Digital Devices
From advanced imaging platforms to robotic-assisted surgery, medical devices increasingly rely on real-time data processing. Powell highlighted that industry leaders like GE and Siemens are “going to become robotic in their own right,” moving beyond simple sensors to autonomous or semi-autonomous systems that can help clinicians interpret results and perform procedures. NVIDIA believes Blackwell’s accelerated computing will foster next-generation imaging and interventional platforms with built-in AI reasoning.