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Nvidia bets $150B on Taiwan as Trump's plan to make US an AI hub backfires

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Why This Matters

Nvidia's $150 billion annual investment in Taiwan underscores the country's critical role in the global AI supply chain, emphasizing Taiwan's importance as a manufacturing and innovation hub. This move highlights the ongoing strategic importance of Taiwan in the tech industry, even amid geopolitical tensions and US efforts to bolster domestic AI capabilities. The investment signals Nvidia's commitment to maintaining its leadership position in AI technology and manufacturing excellence.

Key Takeaways

In a splashy move that signals that Taiwan remains irreplaceable to the AI industry’s short-term and long-term goals, Nvidia CEO Jensen Huang announced Wednesday that his chip company will invest $150 billion a year to make sure Taiwan remains at the “epicenter” of the “AI revolution.”

“This is where the chips come, packaging comes, this is where the systems are made, this is where AI supercomputers were created,” Huang said. “The number of partners we work with here in Taiwan, incredible.”

As Reuters reported, the substantial investments will be used to create a new Taiwan headquarters for Nvidia, which Huang expects will drive so much AI innovation that the partnership will cement Taiwan as “the world’s tech manufacturing hub for a long time.” That ambitious project will be operational by 2030, Nvidia anticipates, after breaking ground this year.

“Four years ago, five years ago, Nvidia was spending about 10, 15 billion dollars a year in Taiwan,” Huang said at a ceremony celebrating the launch of the company’s new Taiwan base. “Now we’re spending 100, going to 150 billion dollars in Taiwan each year.”

Nvidia is currently the world’s most valuable company, making history in 2025 after becoming the first company to reach a $5 trillion market capitalization. And Huang bragged that the Taiwan base will make sure Nvidia is “worth even more in three ⁠to five years.”

But Huang has so far not explained how Nvidia’s plans in Taiwan may potentially conflict with Donald Trump’s push to make the US the world’s AI hub.

Nvidia did not immediately respond to Ars’ request to comment on this seeming tension.

Nvidia needs Taiwan HQ to meet demand

Last April, Nvidia started producing AI chips on US soil for the first time. The move seemed designed to appease Trump, who had been pressuring US firms to increase domestic manufacturing, a top priority of his AI Action Plan.