By Omor Ibne Ehsan
Publication Date: 2026-10-16 11:00:00
Jensen Huang admits Nvidia can only fill about 70% of current demand, and Taiwan’s government just backed a multibillion-dollar bet that moving suppliers to Texas soil changes that equation for both Nvidia and TSMC.
Supply is the tightest constraint on Nvidia (NASDAQ:NVDA | NVDA Price Prediction). On its August 26, 2026 earnings call, CEO Jensen Huang said, “our entire supply chain is challenged,” and Taiwan now wants to move part of that chain to Texas.
In remarks reported October 16, 2026, Taiwan’s economics minister, Kung Ming-hsin, spoke. He said the government supports a plan for U.S. industrial parks, starting in Texas, with the first complex costing up to $4 billion. The parks target smaller suppliers that serve Taiwan Semiconductor Manufacturing (NYSE:TSM) and AI server assemblers such as Foxconn, placing them near Nvidia and other data center hardware makers.
The two names dropped on October 15, 2026, during a wider tech selloff over AI funding worries. Nvidia closed at $217.23, down 1.84%, and TSMC’s U.S. shares closed at $422.25, down 1.80%.
If you own either stock, the question is whether a supplier park matters to companies this large. It matters more to TSMC’s U.S. ecosystem than to Nvidia’s earnings.
What Taiwan Has Committed
The plan is a statement of intent, backed by government support. The Taiwan Electrical and Electronic Manufacturers’ Association, an industry group, is expected to raise the money, and the government will offer loan…
