Nvidia Corp chief executive Jensen Huang said Thursday that his company feels “perfectly safe,” when it comes to relying on Taiwan for its manufacturing needs in producing chips and computing systems custom designed for artificial intelligence.
Nvida uses Taiwan Semiconductor Manufacturing Co Ltd (TSMC) to manufacture chips it designs. Huang noted TSMC would be making the next generation of Nvidia chips, although he said Nvidia would continue to diversify its supply chain.
Huang said, “When I was here, in all of our supply chain discussions, we feel perfectly safe.”
Some companies and investors have expressed concerns regarding a potential military conflict between Taiwan and China, with even Warren Buffet implying he had sold Berkshire Hathaway’s stake in TSMC over fears of an invasion, among other reasons.
Speaking on the sidelines of a technology event in Taipei, Huang noted he was planning to meet with executives representing Taiwan Semiconductor Manufacturing Co Ltd, as well as electronics manufacturer Foxconn, on Friday.
He added that he had not yet decided if he would travel to China after his trip.
Huang noted that Nvidia had made it a priority to diversify its supply chains, and would be utilizing multiple fabs of TSMC, including a fab in Arizona, “so we have a lot of diversity and resilience designed into our supply chain.”
Huang noted that on Friday he would be meeting with executives from TSMC as well as Apple supplier Foxconn, which makes iPhones, as well as other devices that employ AI chips.
Nvidia makes chips which are used in major tech, ranging from video games and self-driving cars, to cloud computing, and increasingly, artificial intelligence.
Huang, noting he had dinner with TSMC founder Morris Chang while in Taiwan, said the company was a first-class company with “immense capacity and incredible agility.”
Huang, who was born in Taiwan, said, “I have every confidence that the demand placed on us, which is extremely high, will be served and will be served soon. The process of diversifying in different geographies is an excellent strategy by TSMC and so TSMC is now part of Nvidia’s diversity and redundancy strategy.”
On Tuesday, as traders piled into Nvidia shares due to its increasing prominence in the field of AI, the company joined a small clique of US companies which have attained a $1 trillion market value, making it one of the most valuable semiconductor companies to be listed in the entire world.
Last month, Nvidia noted in its earnings report that its second quarter revenue target would be over 50% more than Wall Street had estimated, as it was adjusting its plans to meet a surging demand for its AI chips.
