NVIDIA's Jensen Huang Hints at GPU Contract Manufacturing with Japan's Rapidus

During Press Conference in Japan: "Supply Chain Must Be Strengthened... Trust in Rapidus"
Suggests Foundry Production Possibility Beyond TSMC
"Japan's Semiconductor Industry Is World-Class"
"Lost Decades Can Be Recovered with AI"
Japanese Government Announces 10 Trillion Yen Semiconductor Support Strategy Ahead of Jensen Huang's Visit, Considering Rapidus

Jensen Huang, CEO of NVIDIA (left), and Masayoshi Son, Chairman of SoftBank, are having a conversation at the NVIDIA AI Summit held in Tokyo, Japan, on the 13th. Photo by AFP Yonhap News

Jensen Huang, CEO of Nvidia, which virtually monopolizes GPUs, semiconductors for artificial intelligence (AI), made remarks suggesting the outsourcing of GPU production through Japan's semiconductor foundry company Rapidus. This is interpreted as an intention to rebuild the supply chain by considering Japan as an alternative to Taiwan's TSMC.

At a press conference following the 'Nvidia AI Summit' held in Tokyo on the 13th, CEO Huang said, "We need to strengthen the supply chain," mentioning the necessity to diversify outsourcing production bases.

While Huang acknowledged that TSMC is an excellent company, when asked whether Nvidia would outsource manufacturing to Rapidus, he said, "I have trust in Rapidus." Rapidus is a company established by the Japanese government, uniting domestic firms based on coordination with the U.S. government to revive the semiconductor foundry industry. It aims to start operations from April next year with orders targeted from 2027.

Nvidia can produce GPUs in Japan not only through Rapidus but also via TSMC. TSMC is also continuously increasing investments in Japanese semiconductor parts and materials companies. CEO Huang added, "Japan possesses world-class semiconductor manufacturing technology and has sufficient capability."

Coinciding with Huang's visit to Japan, the Japanese government announced a large-scale semiconductor investment strategy. Japanese Prime Minister Shigeru Ishiba announced at a press conference held immediately after his nomination on the night of the 11th that over 10 trillion yen (approximately 90 trillion won) would be invested in semiconductors and AI by 2030. Japanese media evaluated this announcement as support for Rapidus.

Huang's ambition goes beyond just producing GPUs in Japan. It is a project to revive Japan with AI following Taiwan. During the event, Huang repeatedly recalled Japan's decisive contribution to Nvidia's business, showing special affection for Japan. Few countries he has recently visited have received such affection.

Through a dialogue with SoftBank Chairman Masayoshi Son, CEO Huang diagnosed that "Japanese companies can recover the lost decades through AI utilization." He also pointed out that "Japan has accumulated expertise," citing the robotics industry as an example. He argued that by integrating AI into Japan's robotics industry, represented by the animation 'Atom,' physical AI can be realized. He also emphasized that Japan's labor shortage problem can be solved with technologies like digital humans.

Chairman Son also expressed strong determination that SoftBank is advancing AI by purchasing Nvidia's H100 GPUs in large quantities, introducing the latest GPU, Blackwell, and collaborating with supercomputer manufacturer Fujitsu to implement next-generation communications combined with AI. The Japanese government has also started supporting AI development, specifically Sovereign AI, by purchasing Nvidia GPUs in large quantities with its budget.