Nvidia Chief Executive Jensen Huang on Friday lauded Taiwan Semiconductor Manufacturing Co. during a visit to Taipei, calling the company one of the greatest in history and suggesting that any investor buying into it would be “very smart.”
The comments came in response to questions about Washington’s interest in acquiring stakes in major chipmakers, including TSMC, under the US CHIPS and Science Act.
Well, first of all, I think TSMC is one of the greatest companies in the history of humanity, and anybody who wants to buy TSMC stock is a very smart person.
He noted that TSMC is currently building six new products for Nvidia, ranging from central processing units to next-generation graphics processing units that will underpin its Rubin artificial intelligence chip platform.
US weighs equity stakes under CHIPS Act
Huang’s remarks come as debate intensifies in Washington over whether the government should take equity positions in companies benefiting from CHIPS Act subsidies.
The Biden-era law, passed in 2022, provides grants and loans to chipmakers investing in US facilities in a bid to revive domestic semiconductor leadership.
TSMC has been awarded $6.6 billion in subsidies to support its Arizona plants, part of a $165 billion expansion in US investments announced earlier this year.
Reuters reported earlier this week that Commerce Secretary Howard Lutnick said the government was in talks to take up to a 10% stake in Intel and suggested other firms could also be considered.
Reports in the Wall Street Journal, however, indicated that Washington had no immediate plans to seek shares in companies such as TSMC or Samsung, both of which are building capacity in the United States.
Nvidia to expand presence in Taiwan
Separately, Huang said Nvidia was moving forward with “NVIDIA Constellation,” a planned new office in Taiwan to accommodate its growing workforce in the region.
“We have many, many employees here in Taiwan, and we’re growing here in Taiwan because our supply chain is so busy here,” Huang said.
“We’re working with chip companies, system vendors and system makers all over Taiwan, and everybody is working so hard for us.”
He noted the company is still working with the local government on regulatory issues before construction begins.
Huang addresses H20 chip setback in China
Huang also addressed challenges in China, where Nvidia has reportedly asked suppliers, including Foxconn, to halt production tied to its H20 graphics processors.
The chips, designed for the Chinese market after earlier US export restrictions, have faced fresh hurdles after Beijing raised national security concerns.
Last month, Nvidia said it expected to secure an export license for the H20, but recent reports suggest Chinese firms are unable to purchase the product.
Huang said the company has responded to Beijing’s concerns and hopes for a resolution.
“We are engaging with regulators and customers and expect the issue to be clarified soon,” he said.
Shares of TSMC, the world’s largest contract chip manufacturer, have gained 6.5% so far this year, reflecting continued optimism in global semiconductor demand despite geopolitical headwinds.
The post Nvidia’s Jensen Huang calls TSMC stock buyers ‘very smart’ as US mulls chip equity stakes appeared first on Invezz
