Nvidia Corp. CEO Jensen Huang said he feels “perfectly safe” depending so much on Taiwan for chip manufacturing.
Some corporations have expressed concerns about commercial risks due to China’s increased military threats towards Taiwan, which Beijing claims as its own despite Taipei’s vehement objections.
Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330. TW) makes Nvidia processors, and Huang said TSMC would also make his company’s next generation of goods. As a result, Nvidia (NVDA.O) would continue to diversify.
Huang told reporters on the sidelines of a technology event in Taipei, “When I was here, in all of our supply chain discussions, we feel perfectly safe,” when questioned about the political risk of the globe relying so much on Taiwan for chips given China tensions.
Nvidia had three TSMC fabs and planned to source from the Arizona fab, “so we have a lot of diversity and resilience designed into our supply chain.”
On Friday, Huang intended to meet with officials from TSMC and Foxconn (2317. TW), which builds iPhones and other electronics using AI chips.
He stated that he hadn’t decided whether to visit China after Taiwan.
From video games and self-driving vehicles to cloud computing and AI, Nvidia chips have powered significant tech revolutions. Huang called TSMC, whose founder Morris Chang he had dinner with in Taiwan, a world-class corporation with “immense capacity and incredible agility.”
“I have every confidence that the extremely high demand placed on us, which is extremely high, will be served and will be served soon,” Taiwan-born Huang added. “TSMC is now part of Nvidia’s diversity and redundancy strategy because of its excellent strategy of diversifying in different geographies.”
On Tuesday, Nvidia, the world’s most valuable listed semiconductor business, joined an elite club of U.S. companies with a $1 trillion market value as investors flocked into the AI boom’s greatest winner.
Huang’s visit to Taipei has been a rock star reception, with thousands of admirers requesting pictures after his keynote talk on Monday.
Last month, Nvidia announced a second-quarter revenue target of more than 50% over Wall Street projections and planned to increase supplies to satisfy rising demand for its AI processors.
