Nvidia says it will invest $150 billion a year in Taiwan for AI work

In short: Nvidia CEO Jensen Huang said the company will invest about $150 billion per year in Taiwan and build a new Taiwan headquarters aimed at supporting AI chip production.

What happened

Nvidia CEO Jensen Huang announced that Nvidia plans to spend up to $150 billion each year in Taiwan. He said the goal is to keep Taiwan at the center of the company’s AI hardware work.

Huang said Nvidia’s spending in Taiwan has grown quickly, from about $10 to $15 billion a year several years ago to about $100 billion now. He said Nvidia expects that figure to rise to $150 billion a year.

Reuters reported that Nvidia will build a new headquarters in Taiwan. Nvidia expects it to be operating by 2030, after breaking ground this year.

Huang pointed to Taiwan’s role in the supply chain, which is the long chain of steps needed to make and assemble chips. He highlighted “packaging,” which is a key step where chips are prepared and connected so they can be used in servers (the big computers that run many AI services).

Why it matters

This move is a reminder that many of the parts needed to build AI systems are still concentrated in Taiwan. You can think of it like a city that has most of the specialized factories and skilled workers for a single product. Even if some production moves to the US, Nvidia is signaling it still needs Taiwan to keep up with fast-growing demand for AI chips and the computers built around them.

The announcement also lands during a period of political pressure in the US to make more chips domestically. That creates uncertainty about future tariffs, which are import taxes that can raise costs and reshape where companies build and ship products.

Source: Arstechnica