Nvidia CEO denies that US wants to shift 40% of Taiwan's chipmaking capacity to America — Jensen Huang says onshoring is all new capacity, will preserve island nation's silicon shield

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Silicon shield will remain with Taiwan.

Jensen Huang
(Image credit: Getty / Bloomberg)

Jensen Huang, chief executive of Nvidia, has rebuffed claims that the U.S. Intends to shift 40% of Taiwan's semiconductor capacity to the U.S., therefore removing the island's silicon shield, reports DigiTimes. He insisted that the global fab construction represents new capacity growth rather than relocation. Haung also said that TSMC must expand worldwide to meet surging AI-driven demand for chips and keep Taiwan as its stronghold.

Huang explained that demand for wafers is now outpacing what Taiwan's power grid can physically support, making overseas production a necessity rather than a political manoeuvre. He said that while TSMC will build and expand fabs in the U.S., Europe, and Japan, a substantial share of its output will remain in Taiwan, as no other region can replace the island's manufacturing ecosystem. According to Huang, spreading production across multiple regions strengthens resilience for both Taiwan and the U.S. And prevents supply bottlenecks as AI hardware volumes rise sharply.

For Nvidia, which sells everything it can produce both in Taiwan and the U.S., vast manufacturing capacities are crucial. Meanwhile, getting enough memory — HBM, DDR5, GDDR7, LPDDR5X, or even NAND — is as crucial for the company as getting enough compute silicon. To that end, production capacities for DRAM and NAND in Japan, South Korea, Taiwan, Singapore, and eventually the U.S. Are just as important to Nvidia as logic production. Huang said the company is coordinating closely with all major HBM suppliers —Samsung Electronics, SK hynix, and Micron Technology — to secure the volumes required for its next-generation AI accelerators, namely Rubin.

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Anton Shilov
Anton Shilov
Contributing Writer
4 Comments Comment from the forums
  • waltc3
    Suppose China invades Taiwan and nationalizes everything? Political stability in the US is guaranteed under the (R)s, especially, but it's a wise to move production to the US while keeping it going strong in Taiwan, too. It actually makes Taiwan more secure against a Communist takeover rather than less, I think, because China realizes that even an invasion and pacification of Taiwan would not give them all of TSMC.
    Reply
  • blppt
    " Political stability in the US is guaranteed under the (R)s"

    Wha? Huh? That is some next-level projection.
    Reply
  • hotaru251
    waltc3 said:
    It actually makes Taiwan more secure against a Communist takeover rather than less, I think, because China realizes that even an invasion and pacification of Taiwan would not give them all of TSMC.
    No it doesn't.

    Taiwan law dictates the most advanced node can NOT be made outside Taiwan.
    That is the golden ticket of for all corpo (the best and highest sought after).
    Taiwan's already stated they will blow it all up in event they are invaded by force regardless of who does it.
    Reply
  • robertsky
    The shield might still be there now, but with every boom, there will be a bust. When that happens, let's see how America will twist the arms of TSMC and others to keep the factories running there and force to give up the factories in Taiwan.
    Reply