Key Highlights
- Jensen Huang, Nvidia’s CEO, revealed intentions to boost the company’s annual Taiwan expenditure from $100 billion to $150 billion.
- The chipmaker plans to construct a Taipei campus named Constellation, scheduled for completion in 2030 with room for 4,000 workers.
- Taiwan’s Taiex benchmark reached an all-time closing high, gaining 1.7%, as TSMC advanced 1.3% and MediaTek soared 8.8%.
- Sales from mainland China and Hong Kong dropped by half in Nvidia’s most recent reporting period, while Taiwan sales increased over 50%.
- Chinese semiconductor equities tumbled significantly, including Cambricon’s 5% decline and Hygon’s 7% drop.
At a Wednesday employee gathering in Taipei, Nvidia’s chief executive Jensen Huang unveiled one of the corporation’s most substantial pledges to Taiwan to date — an initiative to raise annual procurement from Taiwanese partners from $100 billion to $150 billion.
Huang made this declaration during the unveiling of Nvidia’s latest Taiwan facility. He revealed that the organization currently allocates approximately $100 billion annually in the territory — a dramatic increase from the $10 to $15 billion spent each year just four or five years prior. The company provided no specific timeframe for achieving the $150 billion threshold.
Shares of Nvidia (NVDA) declined 0.22% during the trading session, whereas Taiwan Semiconductor Manufacturing (TSM) climbed 1.93%.
The announcement propelled Taiwan’s Taiex benchmark to an unprecedented closing level, advancing 1.7% for the day. TSMC, which serves as Nvidia’s principal manufacturing collaborator, finished 1.3% higher. MediaTek surged 8.8% while Delta Electronics advanced 7.2%.
Analysts anticipate Nvidia will surpass Apple as TSMC’s biggest client in the current year. The projected $150 billion annual investment would actually surpass Nvidia’s own quarterly sales figures — the corporation reported record revenue of $81.6 billion for the quarter concluding April 26 and forecasts $91 billion for the ongoing quarter.
Before the year concludes, Nvidia intends to break ground on the new Taipei office development dubbed Constellation. Upon its 2030 inauguration, the facility will accommodate as many as 4,000 personnel in northern Taipei — quadruple the company’s existing workforce in the area.
China Faces Revenue Collapse
The Taiwan investment surge arrives as Nvidia’s Chinese operations have experienced the opposite trajectory. During its latest quarterly report, revenue from mainland China and Hong Kong decreased by 50% compared to the previous year, whereas Taiwan revenue jumped more than 50%.
Chinese chip manufacturers experienced steep declines on Wednesday. Cambricon dropped 5% while Hygon declined 7%. These stocks had gained ground earlier in the week following Huawei’s announcement of an innovative chip engineering methodology called “LogicFolding,” which the company intends to deploy in a smartphone processor this autumn and in data center chips “by approximately 2030.”
Strategic Timing and Politics
The investment announcement arrives during a politically delicate period. President Trump indicated earlier this month that he might leverage a $14 billion U.S. weapons sale to Taiwan as a “bargaining tool” with China, remarks that came after his meeting with Chinese President Xi Jinping. Trump subsequently clarified that U.S. Taiwan policy remains unchanged, and separately greenlit an $11.1 billion arms deal in December.
While Huang avoided direct commentary on geopolitical matters, the magnitude of the commitment is telling. “Taiwan is the epicenter of the AI revolution,” he stated Wednesday.
Nvidia has separately pledged to invest $500 billion in AI infrastructure across the United States over a four-year period — approximately $125 billion per year — partnering with domestic manufacturers.
Huang further emphasized that artificial intelligence merged with physical hardware, which he termed “physical AI,” would “revolutionize manufacturing,” and that Nvidia’s Taiwanese collaborators would gain immediate advantages from these innovations.
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