Nvidia CEO Jensen Huang announced plans on Monday (19 May) to build Taiwan’s first AI supercomputer, in collaboration with Taiwanese tech giants Foxconn and TSMC, as well as the government.
The announcement came ahead of Computex, Taiwan’s leading technology expo, which brings together global semiconductor and tech leaders.
During his keynote speech on the eve of the four-day event, Huang emphasised the importance of establishing world-class AI infrastructure in Taiwan, describing it as crucial for supporting the AI ecosystem.
He stated, “Having a world-class AI infrastructure in Taiwan is really important.”
The AI supercomputer project aligns with Taiwan’s ambition to bolster its status as a global semiconductor hub. The island already plays a vital role in producing advanced chips needed for AI applications and research, such as those used in devices from iPhones to ChatGPT servers.
The Computex expo, a significant event in the global tech calendar, has drawn executives from major companies such as Qualcomm, MediaTek, and Foxconn. The focus this year is on integrating AI into diverse applications beyond data centres, including laptops, robots, and cars.
Despite the excitement around AI innovation, the backdrop of US tariffs looms over the semiconductor sector. Recently, Washington announced a national security probe into semiconductor technology imports, raising fears of additional tariffs.
These measures could affect companies heavily reliant on exporting chips, including Taiwanese firms.
Since taking office, President Donald Trump has imposed or threatened tariffs on several US trading partners, pushing for a shift in production to American soil.
In response, Taiwan has pledged to increase its investments in the United States, aiming to minimise the impact of a potential 32 per cent tariff.
TSMC, Taiwan’s leading contract chipmaker, has already committed an additional US$100 billion to the United States, adding to the US$65 billion previously pledged.
In a related move, TSMC-supplier GlobalWafers announced a US$4 billion expansion of its wafer production facility in Texas.
Huang expressed confidence in Taiwan’s ability to maintain its central role in the tech ecosystem despite the challenges posed by tariffs.
“There are so many smart companies here, there are so many innovative and spirited companies,” he said, adding that he expects Taiwan to thrive despite the shifting geopolitical landscape.
Taiwan’s semiconductor industry serves as a strategic asset, often described as a “silicon shield” that could deter military aggression from China. The island’s critical role in global tech supply chains also encourages continued US support.
However, some analysts caution that if production moves to the United States, Taiwan could risk losing its dominant position.
Nevertheless, the investments by TSMC and GlobalWafers indicate a balanced strategy, aiming to maintain a strong presence in both the US and Taiwan.
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