2024-01-27 10:13:00
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27.01.2024 13:13, Dmitry Fedorov
NVIDIA’s longtime leader, Jensen Huang, held talks this week with the management of the Taiwanese company TSMC in Taipei. Born in Taiwan, Huang is especially popular on the island, where technology, especially the semiconductor industry, is key to the economy. The central topic of discussion was the shortage of AI chips, which threatens the further development of the industry.
Image Source: NVIDIA
At the dinner meeting, Huang discussed the company’s strategic role in NVIDIA’s chip business with TSMC founder and industry influencer Morris Chang. These chips are key to most generative AI training systems around the world. Huang emphasized the significance of this partnership in a conversation with reporters, acknowledging that TSMC plays a leading role in the production of chips that underlie modern AI technologies: “This is the renaissance of the computer industry, and that is why Taiwan is central to it. TSMC and the Taiwanese OEM ecosystem will all be part of this new era of computing».
Huang’s trip follows his recent visit to China, his first in four years. He noted that the meetings in China took place once morest the backdrop of strict US restrictions on the export of advanced NVIDIA chips to a country that Washington considers its geopolitical rival. He previously warned that increasing US sanctions aimed at limiting China’s access to chips for AI training might encourage local companies to develop their own analogues. This development might be detrimental to American technology companies in the long term. As an example of a potential competitor, Huang mentioned Huawei, which introduced an advanced Chinese-made processor into one of its smartphones in 2023, causing concern in Washington.
Huang, who typically avoids commenting publicly on his visits to China, has been open regarding the critical role Taiwan and TSMC play in NVIDIA’s business and the semiconductor industry as a whole. “Scaling AI capabilities is the biggest challenge we face“, he said. Huang also emphasized that NVIDIA, along with TSMC and other supply chain partners, is making every effort to meet the growing demand for AI chips.
NVIDIA, whose market value has tripled in 2023 thanks to its key role in the development of AI, has demonstrated an incredible 24% growth in capitalization this year. Investors see the company as a sector leader that continues to adapt to changing market conditions, including developing versions of its chips for China that comply with American restrictions. The AI boom is also helping to stabilize TSMC’s business. Last week, the company announced forecasts for increased capital expenditure and stable revenue growth, which had a positive impact on shares across the sector.
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