Long-time NVIDIA boss Jensen Huang held talks with the management of the Taiwanese company TSMC in Taipei this week. Huang was born in Taiwan and is particularly popular on the island, where technology, particularly the semiconductor industry, is crucial to the economy. The central topic of discussion was the lack of AI chips, which threatens the further development of the industry.
Over dinner, 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, speaking to reporters, emphasized the importance of this partnership and acknowledged 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 plays a central role. 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 came against the backdrop of strict US restrictions on the export of advanced NVIDIA chips to a country that Washington sees as its geopolitical rival. He previously warned that increasing US sanctions aimed at restricting China’s access to chips for AI training could encourage local companies to develop their own analogues. This development could be damaging to American technology companies in the long term. As an example of a potential competitor, Huang cited Huawei, which introduced an advanced Chinese-made processor in one of its smartphones in 2023, causing concern in Washington.
Huang, who typically avoids publicly commenting on his visits to China, was outspoken about 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, together with TSMC and other supply chain partners, is making every effort to meet the growing demand for AI chips.
NVIDIA, whose market value tripled in 2023 thanks to its key role in the development of AI, has recorded an incredible capitalization growth of 24% this year. Investors view the company as an industry 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 higher capital spending and stable revenue growth, which had a positive impact on stocks across the sector.