NVIDIA CEO Pushes Back on “Shift” Narrative, Saying the U.S. Chip Production Target Requires TSMC to Add More Capacity, Rather Than Abandoning Taiwan

NVIDIA’s CEO has commented on the recent trade deal between the US and Taiwan, which requires the latter to shift a significant portion of its chip capacity to American soil.

TSMC’s Shift to the US Focuses More On Adding Newer Capacity, Maintaining the Exclusivity in Taiwan

TSMC has been a major focus on the geopolitical front, given that chips are becoming a matter of ‘national security’ for several countries worldwide. More importantly, for Taiwan in particular, the pressure to shift chip production lines to the US has increased sharply since President Trump took office. Interestingly, with the recent US-Taiwan trade deal, it is reported that TSMC will bring 40% of its total chip output to US facilities, and NVIDIA’s CEO says the deal involves adding new capacity rather than a transfer from Taiwan.

When asked by the media about the rumors that the US wants Taiwan to transfer 40% of its semiconductor production capacity to the US, NVIDIA CEO Jensen Huang pointed out that it is inappropriate to think of this issue as “transfer” but rather as “increasing” production capacity.

– UDN

NVIDIA’s CEO also says that Taiwan’s power constraints limit TSMC expansion plans, which is why the nation is pursuing fab plans in Europe, Japan, and the US as well. Jensen claims that the US-Taiwan trade deal is a “win-win” for both parties, enabling increased global chip output and, for America, a resilient supply chain. Following the trade deal,…