The artificial intelligence boom that began last year faces significant challenges, including a limited supply of AI chips. This week, Nvidia CEO Jensen Huang met with his friends over at Taiwan Semiconductor Manufacturing Co. to discuss these issues.
Days after leaving for his first trip to the Chinese mainland in four years, Huang reached Taipei at a time when the US was preventing the sale of Nvidia’s most advanced chips to a rival geopolitical power.
Although Nvidia hasn’t made much noise about the low-key tour, reports claim Huang spoke candidly on Thursday about Taiwan and TSMC’s crucial position in both Nvidia’s operations and the larger semiconductor industry.
Before leaving for his company’s traditional local New Year celebrations, Huang stated:
“Scaling the capacity of AI is the single greatest challenge in AI.”
To meet the demand, TSMC and the rest of our supply chain partners are working extremely hard.
Huang also refused to comment on inquiries concerning its operations in China. The head of Nvidia has previously issued a warning that local companies may create their substitutes if US sanctions are tightened to stop the supply of AI training chips to China.
The long-term effects of that could hurt American IT leaders. Nvidia is up an additional 24% this year as investors place bets on its leadership in the industry. It more than tripled its market value in 2023, primarily because of its crucial position in AI development.
The company also claims that the chips it has designed for China, including the GeForce RTX 4090D, comply with US regulations. Huang, who was born in Taiwan, is treated like a celebrity on the island because the economy is based mostly on technology, particularly semiconductors.
Local media frequently shows him visiting his favorite spots, and last week, they ran a video showing the CEO at a restaurant serving noodles. Huang acknowledged the most important industry on the island on Thursday.
He stated that this is a rebirth of the industry, confirming that Taiwan is crucial to the ongoing developments. Therefore, in addition to TSMC, everyone in the Taiwan system maker ecosystem will play a significant role in this new age of computing.
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