TSMC Lays the Foundation, Nvidia Builds the Fortress
A Strategic Stronghold and Geopolitical Risk Diversification
Jensen Huang Reshapes AI Leadership Centered on Taiwan
Jensen Huang, CEO of Nvidia, turned the 'Computex 2025' exhibition held in Taipei, Taiwan, into a celebration for Nvidia and Taiwanese companies. He announced plans to build AI supercomputers in collaboration with Taiwanese firms and unveiled the site for Nvidia's new, large-scale headquarters in Taiwan. Analysts interpret these moves as a strategic decision to reorganize the AI leadership around Taiwan, going beyond personal affection for his birthplace.
On the evening of May 17, the day after arriving in Taiwan, CEO Huang invited partner companies to a traditional restaurant in downtown Taipei. According to sources, he emphasized, "Within this group, there should be no deception or conflict," and warned, "If such issues arise, Nvidia will cut off its technology supply."
Jensen Huang, CEO of Nvidia, is taking a commemorative photo after having dinner with Taiwanese supply chain companies on the 17th. Photo by Reuters Yonhap News
The private banquet was attended by leaders of 11 global semiconductor, electronics, and manufacturing companies representing Taiwan, including Mark Liu, Chairman of TSMC; Rick Tsai, CEO of MediaTek; Barry Lam, Chairman of Quanta; Jonney Shih, Chairman of Asus; T.H. Tung, Chairman of Pegatron; and Simon Lin, Chairman of Wistron. Huang's half-joking warning carried the message that companies within the 'Nvidia ecosystem' should not compete with each other but instead grow together.
Three days later, at the opening of 'Computex,' these companies prominently showcased their collaborations with Nvidia, including AI PCs, GPU servers, and industrial solutions. Although Nvidia did not announce any new chips, which left international reporters underwhelmed, the atmosphere on site was fervent. The newly coined term 'Jensanity,' a combination of Jensen Huang and 'insanity,' reflects the enthusiasm for CEO Huang.
Why, then, is CEO Jensen Huang making such concentrated investments in Taiwan? While one might attribute it to his hometown ties, his current nationality is clearly American. The industry cites several reasons for Nvidia's so-called 'Ode to Taiwan': TSMC, Taiwan's role as a strategic hub, and the diversification of geopolitical risks. The 'Taiwan Cluster,' built on the foundation laid by TSMC and developed by Nvidia, is seen as the result of thorough strategic calculation.
Jensen Huang, CEO of Nvidia, is delivering the keynote speech at Computex 20255 at the Taipei Music Center in Taiwan on the 19th. Photo by Reuters Yonhap News
A semiconductor industry insider at the scene commented, "When Nvidia was struggling, TSMC supplied wafers at low prices, helping companies like Nvidia, MediaTek, and Realtek to grow. Among them, Nvidia's GPU met the right timing with the rise of AI and became a leader." TSMC, the world's largest foundry (semiconductor contract manufacturing) company, continues to manufacture the majority of Nvidia's chips.
Taiwan is also an ideal strategic base for Nvidia. Taiwan maintains smooth relations with the United States, the world's largest market, and has a high degree of technological independence. In addition to TSMC, Taiwanese companies such as Foxconn, the world's largest electronics contract manufacturer that produces Apple iPhones, as well as MediaTek and Gigabyte, have expanded globally, forming a robust supply chain within Taiwan.
There is also the aspect of diversifying geopolitical risks. At the GTC Taipei Global Press Conference on May 20, CEO Huang strongly expressed his dissatisfaction, stating, "U.S. export controls have failed." He explained that U.S. government restrictions on China have resulted in billions of dollars in losses. For Nvidia, which has generated significant revenue in China, Taiwan's rapidly growing AI computing market offers high investment value as a new market that can transcend U.S.-China tensions.
Considering these factors, the unveiling of Nvidia's new headquarters, Constellation, at Computex is seen as the first step in CEO Huang's intention to reorganize the AI leadership around Taiwan. An industry official commented, "Beyond traditional semiconductor design and manufacturing, Nvidia aims to establish a 'complete' ecosystem within Taiwan, encompassing data centers, systems, robotics, and even supercomputers."
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