On Thursday, Nvidia Corp. CEO Jensen Huang said he feels “perfectly safe” depending on Taiwan for chip manufacturing.
China’s military threats to Taiwan, which Beijing claims as its own despite Taipei’s vehement objections, have raised fears among some corporations.
Huang said his company’s next generation of goods would be made by Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330. TW), which makes Nvidia chips, and Nvidia (NVDA.O) would diversify.
“When I was here, in all of our supply chain discussions, we feel perfectly safe,” Huang told reporters on the sidelines of a technology event in Taipei when questioned about the political risk of the globe relying so much on Taiwan for chips given China tensions.
Huang said Nvidia would source from TSMC’s Arizona fab, “so we have a lot of diversity and resilience designed into our supply chain.”
Huang said he will see officials from TSMC and Foxconn (2317. TW), which builds iPhones and other AI-powered products, on Friday.
After Taiwan, he wasn’t sure if he’d go to China.
Nvidia chips power video games, self-driving cars, cloud computing, and AI.
Huang called TSMC, whose founder Morris Chang he dined with in Taiwan, a world-class corporation with “immense capacity and incredible agility.”
“I have every confidence that the demand placed on us, which is extremely high, will be served and will be served soon,” Taiwan-born Huang added.
“TSMC’s strategy of diversifying in different geographies is excellent, so Nvidia now uses TSMC for diversity and redundancy.”
On Tuesday, investors flocked into Nvidia, the world’s most valuable listed semiconductor company, joining a select club of U.S. companies with a $1 trillion market valuation.
Following a keynote talk on Monday, Huang, a Taiwanese rock singer, was mobbed by fans for photographs.
Nvidia set a second-quarter sales target of more than 50% over Wall Street projections last month and planned to increase supplies to satisfy rising AI chip demand.
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