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The logo of Taiwan Semiconductor Manufacturing Co. (TSMC). /Yonhap

Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is reportedly considering expanding into the memory chip business.

According to industry sources Monday, U.S. technology news outlet The Information reported Friday, citing two people familiar with the matter, that TSMC had begun drawing up plans to produce three-dimensional (3D) DRAM chips at Nvidia's request. 

The report said TSMC began exploring advanced memory chip manufacturing after Nvidia and other chip designers started seeking additional suppliers amid a shortage of memory chips. The company is reportedly considering both building new factories and acquiring existing facilities.

The initiative is said to be led by Hsu Kuo-chin, a TSMC vice president who oversees advanced packaging. Hsu previously headed Micron's operations in Taiwan. 

However, The Information also noted that TSMC could postpone the initiative because of the cyclical nature of the memory chip market.

TSMC previously said in a statement, "We don't comment on market rumors or speculation," adding that the company remains focused on its core business as a dedicated semiconductor foundry. 

The Information

                                                                                                               Choi In-gyu