Nvidia CEO Praises TSMC Amid U.S. Tech Investments

Taipei, Taiwan — Nvidia Corp. CEO Jensen Huang visited Taiwan on Friday and expressed strong support for Taiwan Semiconductor Manufacturing Company (TSMC), calling it “one of the greatest companies in the history of humanity.” Huang remarked that anyone looking to buy TSMC shares would be making a “very smart” investment, especially as the U.S. government shows interest in acquiring stakes in tech companies.

Huang’s comments reflect TSMC’s critical role in the semiconductor industry, which has become increasingly important due to rising demand for AI technologies. His visit aimed primarily to thank TSMC for its collaboration on Nvidia’s next-generation chip platform, codenamed Rubin. Huang announced that TSMC is developing six new products for Nvidia, including a central processing unit (CPU) and a graphics processing unit (GPU) tailored for AI applications.

Earlier this week, U.S. Commerce Secretary Howard Lutnick discussed the possibility of the government acquiring equity stakes in struggling firms like Intel and possibly more, as part of its broader strategy under the CHIPS Act. Passed in 2022, the CHIPS Act aims to revitalize the U.S. semiconductor industry by granting billions of dollars in subsidies for increased production.

Amid this backdrop, TSMC is set to receive $6.6 billion from the CHIPS Act to construct three advanced chip manufacturing facilities in Arizona. However, conflicting reports arose as the Wall Street Journal stated that the U.S. administration does not intend to pursue shares in companies making significant U.S. investments.

Aside from praising TSMC, Huang confirmed that Nvidia has paused production of its H20 graphics processing units at several suppliers, including Foxconn, following security concerns from China regarding these chips. Nvidia had anticipated receiving an export license for the H20s, which had been banned from export since April. Huang noted the company is addressing the concerns raised by Beijing.

The developments surrounding TSMC and Nvidia highlight the strategic importance of the semiconductor industry in the current geopolitical climate. TSMC, being the world’s largest contract chipmaker, continues to play a pivotal role in the tech sector.