Taiwan Semiconductor Manufacturing Co. (TSMC) is considering expanding into advanced memory chip production, including 3D DRAM. According to Odaily, The Information reported, citing two sources, that TSMC recently began planning production of the chips in response to a request from Nvidia, its largest customer.

DRAM stores data for processors to use. Unlike conventional DRAM, which places memory cells in a single layer, 3D DRAM stacks the cells vertically to increase memory capacity. Samsung Electronics, SK Hynix and Micron Technology dominate memory chip manufacturing and are also developing 3D DRAM technology.

A memory chip shortage driven by demand for AI hardware has pushed prices higher, prompting chip designers including Nvidia and Apple to seek additional supply sources. Apple raised prices for its devices earlier this year amid higher memory costs.