In a recent episode of the "Lex Fridman" video podcast, NVIDIA's CEO, Jensen Huang, disclosed an intriguing aspect of the company's enduring partnership with TSMC: they have been collaborating closely for over three decades without ever formalizing their agreement with a written contract. This remarkable synergy, he explained, is rooted in a profound level of mutual trust that has transcended the need for legal documentation.

Huang lavished praise on TSMC, highlighting its formidable technological prowess. He pointed out that TSMC's true strength lies in its multi-layered technological stack, which spans across critical domains such as transistor design, alloying techniques, advanced packaging solutions, and silicon photonics. This comprehensive technological arsenal, Huang noted, has created an industrial moat around TSMC, making it exceedingly difficult for competitors to replicate its success.

Furthermore, Huang underscored TSMC's exceptional prowess in capacity scheduling, a crucial skill in navigating the volatile global market. TSMC's ability to swiftly adjust its production capabilities in response to fluctuating demand has ensured a precise and stable supply of products to its clients, a feat that has not gone unnoticed in the industry.

Huang also emphasized TSMC's unique ability to strike a delicate balance between pursuing cutting-edge technologies and maintaining a steadfast focus on customer needs. This customer-centric approach, coupled with its relentless pursuit of innovation, is a rarity among global enterprises, he observed, and one that has undoubtedly contributed to TSMC's enduring success.