Nvidia's next-generation graphics processing unit (GPU), Rubin, may experience production delays due to a redesign at Taiwan Semiconductor Manufacturing Company. According to Fubon Financial, a Taiwanese financial services firm, the revised version of Rubin is expected to be finalized by late September or October, potentially reducing Rubin's production volumes in 2026.

The delay is attributed to the need for a redesign, which could impact TSMC's production schedule. TSMC is currently the primary manufacturer for Nvidia's GPUs. Despite this setback, Rubin is poised to replace Nvidia's current Blackwell line, which continues to demonstrate impressive growth.

The news comes as TSMC has been focusing on consolidating its 8-inch wafer production capacity to improve efficiency, while phasing out its 6-inch wafer manufacturing business over the next two years. This strategic shift aims to align with market conditions and long-term business objectives, ensuring a smooth transition for customers.

TSMC's strong performance in the second quarter of 2025, marked by a 22.5% quarter-over-quarter (QoQ) increase in net revenue, highlights its resilience in the face of potential U.S. tariffs. The company's CEO, C.C. Wei, noted that the demand for AI chips consistently outpaces supply, positioning TSMC well despite trade tensions.

Nvidia's Rubin GPU is expected to be a significant driver for the company's growth, particularly in the AI and high-performance computing (HPC) markets. The delay in production, however, could impact Nvidia's revenue projections for 2026. Nonetheless, Nvidia's stock has shown resilience, gaining 23% year-to-date (YTD) despite potential U.S. tariffs.