Nvidia CEO feels comfortable with Taiwan for chipmaking

2023-06-01 08:18:31

Nvidia Corp, a leading supplier of artificial intelligence (AI) chips and computer systems, feels “perfectly safe” to rely on the power of Taiwan to manufacture chips, chief executive Jensen Huang said Thursday.

Some companies have worried regarding potential risks to their business given China’s heightened military threats to the democratic island of Taiwan, which Beijing claims as its own, something Taipei strongly opposes.

Chipmaker Taiwan Semiconductor Manufacturing Co Ltd (TSMC) makes chips designed by Nvidia and Huang said his company’s next generation of products will also be made by TSMC, adding that Nvidia will continue to diversify.

“When I was here, in all of our supply chain discussions, we felt perfectly safe,” Huang told reporters on the sidelines of a technology event in Taipei, when asked. on the political risk of seeing the world relying so heavily on Taiwan for chips, given the tensions with China.

Nvidia has diversified through multiple TSMC factories and Huang confirmed that he also plans to source from TSMC’s factory in Arizona, “so we have a lot of diversity and resilience in our supply chain. ‘supply”.

Huang said he plans to meet with executives from TSMC and Foxconn, the supplier to Apple Inc. that makes iPhones and other electronics using AI chips, on Friday.

He has not yet decided whether he will travel to China following his trip to Taiwan.

Nvidia chips have been at the heart of major technology trends, from video games to self-driving cars to cloud computing and now AI.

Huang said TSMC, whose founder Morris Chang he dined with while in Taiwan, was a world-class company with “tremendous capability and incredible agility”.

“I am confident that the demand for us, which is extremely high, will be met and will be met soon,” said Taiwan-born Huang.

“The process of diversifying into different geographies is a great strategy for TSMC, which is now part of Nvidia’s diversity and redundancy strategy.

Nvidia, the world’s most valuable publicly traded semiconductor company, joined the elite club of US companies with a market value of $1 trillion on Tuesday as investors flocked to the chipmaker that has quickly become one of the biggest winners from the AI ​​boom.

Mr Huang is hugely popular in Taiwan and received a rock star welcome when he visited Taipei. He was notably surrounded by fans in search of selfies following a keynote speech on Monday in front of thousands of people.

Last month, Nvidia announced a second-quarter revenue target more than 50% higher than Wall Street analysts, with plans to increase supply to meet runaway demand for its chipsets. AI.

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