Nvidia CEO Visits TSMC Amid Chip Tensions with China
Nvidia CEO Jensen Huang arrived in Taipei on Friday for a brief visit to meet with executives at Taiwan Semiconductor Manufacturing Company (TSMC), Nvidia’s key chip manufacturing partner. His visit comes at a critical time, just days before Nvidia’s scheduled earnings report on Wednesday.
The trip also unfolds against a backdrop of increased tensions between the US and China over access to Nvidia’s advanced AI chips. Speaking at Taipei’s Songshan Airport, where he landed by private jet, Huang stated, “My main purpose coming here is to visit TSMC.” He added that he would stay only for a few hours, with plans to leave after a dinner with TSMC leaders.
New Chip Designs and Internal Talk at TSMC
During his visit, Huang is also expected to deliver a speech at TSMC. The company confirmed the event, noting it would be an internal talk focused on his “management philosophy”.
Huang expressed his appreciation to TSMC for helping develop six new chips, including a GPU and a silicon photonics processor, all part of Nvidia’s next-generation Rubin architecture. “This is the first architecture in our history where every single chip is new and revolutionary,” he noted. These chips have completed the design stage and are ready for production.
Chip Export Uncertainty and Supplier Adjustments
Meanwhile, Nvidia is navigating complicated trade policies and government restrictions. The company developed the H20 chip specifically for the Chinese market after 2023 US export rules limited access to its most powerful AI chips. Although Nvidia received permission in July to resume H20 sales, China’s cyberspace authority raised concerns over potential security risks, leading to fresh uncertainty.
Following these developments, Nvidia has asked several suppliers to halt work related to the H20 chip. This includes Foxconn and Amkor Technology, which handles chip packaging, and Samsung Electronics, which provides high-bandwidth memory. Nvidia is reportedly aiming to work through its existing H20 inventory before resuming production.
Jensen Huang confirmed that Nvidia has a substantial number of H20 chips in stock and is waiting for orders from Chinese customers. “When we receive the orders, we will be able to purchase more,” he said.
Looking Ahead: New Chip for China Market in the Works
Nvidia is also developing a new chip, tentatively called the B30A, based on its latest Blackwell architecture. This chip is expected to be more powerful than the H20. However, its release will depend on US government approval. “It’s up to, of course, the US government, and we are in dialogue with them, but it is too soon to know,” Huang said.
The company maintains that the H20 chip is not designed for military or sensitive government applications. “As both governments recognise, the H20 is not a military product or for government infrastructure,” a Nvidia spokesperson said.
Despite the challenges, Huang emphasised the company’s ongoing efforts to manage supply chain dynamics in response to market conditions and regulatory shifts.
with inputs from Reuters