Image Credit: Taiwan News
Nvidia CEO Jensen Huang revealed that the company could shift its production of graphics processing units (GPUs) away from Taiwan should the country face military threats from China. Speaking at the Goldman Sachs Communacopia & Technology Conference on 11 September, Huang responded to a question posed by Goldman Sachs CEO David Solomon regarding the potential impact of a Chinese invasion on Nvidia’s reliance on Taiwan Semiconductor Manufacturing Company (TSMC).
Huang reportedly stated that while Nvidia could relocate production if TSMC were compromised, the quality of the output might not match current standards. He added that Nvidia possesses the necessary intellectual property to facilitate such a transition, though the process technology might not be as advanced. The CEO emphasised that TSMC remains the world’s leading semiconductor manufacturer by a significant margin.
Industry expert Lin Wei-chih, executive vice president of Witology Markettrend Research Institute, commented on the scenario, suggesting that while TSMC’s technology is currently irreplaceable, companies like Nvidia and AMD should consider diversifying their supply chains. Lin pointed to Samsung and Intel as possible alternatives, despite their lower yield rates in advanced processes.
He explained that while these manufacturers could manage large-scale production, the higher costs associated with lower yields, particularly for large GPUs, would likely cause delays. Lin also mentioned that major testing and packaging companies, such as Amkor Technology, might have an opportunity to gain orders if Nvidia chooses to diversify its packaging needs, or TSMC could outsource the work itself.
Huang’s remarks underline the delicate balance Nvidia faces between its dependence on Taiwan and the need for contingency plans in a time of growing geopolitical uncertainty.