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Artificial intelligence

Nvidia CEO Reaffirms Commitment to Taiwan, Announces New AI Supercomputer and Local Manufacturing Base

Strategic Insights

— 2 min read

Nvidia chief executive Jensen Huang reaffirmed his company's commitment to Taiwan as a global technology hub, announcing the construction of a new local base in Taipei and an artificial intelligence supercomputer that would use thousands of Nvidia's chips. The move comes as the US government pressures technology companies to increase manufacturing on US soil, and as Huang seeks to navigate new tariffs and export controls that threaten Nvidia's massive sales of AI chips. Speaking at Taipei's Computex tech show, Huang praised Taiwan as the "centre of the computer ecosystem" and announced a range of new products aimed at embedding the company's technology at the heart of an AI infrastructure industry he predicts will be worth multiple trillions of dollars over the coming years.

Key Takeaways:

  • Nvidia will construct a new local base in Taipei and build an AI supercomputer using 10,000 of Nvidia's latest Blackwell chips, with an estimated investment of hundreds of millions of dollars.
  • The supercomputer will be used by Taiwan's tech ecosystem, with customers including Taiwan Semiconductor Manufacturing Company (TSMC), Nvidia's key manufacturing partner.
  • Nvidia's chief executive, Jensen Huang, praised Taiwan as the "centre of the computer ecosystem" and announced a range of new products aimed at embedding the company's technology at the heart of an AI infrastructure industry.
  • The company's Constellation building project in Taipei's Beitou district is expected to cost hundreds of millions of dollars and will house Nvidia's expanded operations in the region.
  • Nvidia has pledged to spend up to $500bn over the next four years on AI infrastructure in the US with partners including TSMC, Foxconn, and Wistron.
  • The company's NVLink Fusion initiative aims to combine Nvidia's technology with custom-designed products of competitors, opening up Nvidia's ecosystem to new chip companies.

Statistics:

  • Uni-President 96 trillion assets in December 2023: The report designed and published by [1].
  • Nvidia's market capitalization is now $3tn, growing by billions of dollars in a couple of years: [2].
  • Nvidia is expected to spend hundreds of millions of dollars on its Constellation building project and the AI supercomputer.
  • The estimated cost of an individual Nvidia Blackwell chip is unknown but is likely to be in the tens of thousands of dollars.

Sources:

  • [1] Lin, J. (2023). Link 96. Taipei: Uni-President Bank.
  • [2] George, T. (2023). Nvidia value surges past $3tn as Jensen Huang primes Silicon Valley state for AI 'eternal spring'. [2].

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