Table of Contents
NVIDIA CEO Jensen Huang recently held discussions with Taiwanese company TSMC’s leadership in Taipei. The main focus of these discussions was the ongoing AI chip shortage that threatens the industry’s further growth. Born in Taiwan, Huang enjoys a particular degree of popularity on the island, where technology, especially the semiconductor industry, is critical to the economy.
Discussion with TSMC Founder
In a meeting during dinner, Huang along with TSMC founder and influencer in the industry, Morris Chang, discussed the strategic role of TSMC in manufacturing NVIDIA chips. These chips are essential for most generative AI learning systems globally. Huang emphasized the partnership’s significance and acknowledged TSMC’s leading role in producing chips that underpin modern AI technologies stating, “This is a revival of the computer industry, and that is why Taiwan occupies a central place in it. TSMC and the Taiwanese manufacturers’ ecosystem — they will all participate in this new era of computation.”
Huang’s Recent Visit to China
Huang’s trip came on the heels of his recent visit to China — his first in four years. His comments in China surfaced amidst stringent US restrictions on exporting NVIDIA’s advanced chips to the country, seen by Washington as a geopolitical rival. Previously, Huang had warned that intensifying American sanctions limiting China’s access to AI training chips could spur local companies to develop their own substitutes. This could potentially harm US tech companies in the long run. He cited Huawei as a potential competitor. In 2023, Huawei integrated an advanced Chinese-manufactured processor into their smartphone, causing alarm in Washington.
Huang’s Views on Taiwan and TSMC’s Role in the Semiconductor Industry
While Huang typically avoids public comments on his visits to China, he is vocal about Taiwan’s and TSMC’s critical role in NVIDIA’s business and the semiconductor industry. He stated, “Scaling AI capabilities is the main problem we face.” Huang emphasized NVIDIA, along with TSMC and other supply chain partners, has been working to meet the increasing demand for AI chips.
NVIDIA’s Market Growth
NVIDIA’s market value tripled in 2023 due to its pivotal role in AI development, demonstrating a staggering 24% capitalization growth this year alone. Investors perceive NVIDIA as a sector leader that continues to adapt to changing market conditions, including developing versions of its chips for China that comply with US restrictions. The AI boom also positively impacts TSMC’s business stability. Last week, the company announced forecasts of increasing capital investment and stable revenue growth, positively impacting sector-wide stocks.