Nvidia ramps up Taiwan spending to $150bn a year as AI race intensifies

Nvidia chief executive Jensen Huang says the company plans to spend up to $150 billion annually in Taiwan as the AI chipmaker expands semiconductor partnerships and increases investment in advanced computing infrastructure.

TAIPEI, Taiwan —
Nvidia plans to spend up to $150 billion annually in Taiwan as the US chipmaker expands production partnerships and investment tied to surging global demand for artificial intelligence infrastructure, chief executive Jensen Huang said on Wednesday.

Huang announced the expansion during a launch event in Taipei for Nvidia’s planned Taiwan headquarters, which is expected to break ground later this year and become operational by 2030. “Four years ago, five years ago, Nvidia was spending about $10 billion, $15 billion, a year in Taiwan. Now we’re spending $100, going to $150 billion in Taiwan each year,” Huang said.

The Nvidia chief did not specify how long the company intended to maintain investment at that level.

Taiwan central to global AI chip supply chain

Taiwan has become increasingly important to the global semiconductor industry through companies including Taiwan Semiconductor Manufacturing Company, widely known as TSMC, which manufactures advanced chips used in AI systems, data centres and high-performance computing.

Huang described Taiwan as the “epicentre” of the AI revolution because of its concentration of semiconductor manufacturing, advanced packaging and AI supercomputer production capabilities.

“Taiwan is booming,” Huang said during the Taipei event attended by employees, executives and industry partners. “This is where the chips come from; packaging comes. This is where the systems are made. This is where AI supercomputers were created,” he added.

Nvidia’s planned annual Taiwan spending would rank among the largest technology supply-chain commitments globally, reflecting accelerating investment in AI infrastructure and semiconductor production.

AI investment race intensifies

Nvidia has emerged as one of the biggest beneficiaries of the global AI boom, driven by soaring demand for graphics processing units (GPUs) used to train and operate generative AI models.

The company’s market value has risen sharply over the past two years as governments, cloud providers and major technology companies increased spending on AI infrastructure and advanced computing systems. Industry analysts say Nvidia’s growing investment plans highlight how competition in AI development is reshaping global supply chains and increasing the strategic importance of semiconductor manufacturing. Taiwan’s chip industry has also become central to geopolitical competition between the United States and China over advanced semiconductor production and technology access.

Expansion expected to boost Taiwan operations

Separate Asian financial media reports indicated Nvidia also plans to significantly expand hiring in Taiwan as part of its long-term regional strategy. The expansion comes as major technology firms continue investing heavily in AI chips, cloud infrastructure and next-generation computing platforms amid intensifying global competition. Analysts say Nvidia’s continued dependence on Taiwan-based manufacturing partners underscores the island’s strategic role in the future of AI development and semiconductor supply chains.

Investors and industry executives are closely monitoring how AI companies balance rapid expansion, supply-chain resilience and increasing geopolitical tensions surrounding advanced chip manufacturing.

Sources: Reuters,
Reporting and analysis by Kofi Foli