Nvidia (NVDA) CEO Jensen Huang Pledges $150B Annual Investment in Taiwan

Key Takeaways

• CEO Jensen Huang revealed Nvidia’s intention to boost annual Taiwan expenditures from $100 billion to $150 billion.
• A new Taipei campus named Constellation is planned, scheduled to launch in 2030 with room for 4,000 staff members.
• Taiwan’s Taiex index reached an all-time high close with a 1.7% gain, TSMC climbed 1.3%, and MediaTek soared 8.8%.
• Mainland China and Hong Kong revenues dropped by 50% in Nvidia’s recent quarter, while Taiwan revenue increased more than 50%.
• Chinese semiconductor stocks tumbled, with Cambricon declining 5% and Hygon falling 7% during trading.

At a company event in Taipei this Wednesday, Nvidia CEO Jensen Huang revealed one of the chipmaker’s most substantial pledges to Taiwan to date — an initiative to boost annual procurement from Taiwanese suppliers from $100 billion to an ambitious $150 billion.

The declaration coincided with the unveiling of Nvidia’s new Taiwan campus. Huang disclosed that the company currently allocates approximately $100 billion yearly in the region — a dramatic increase from the $10 to $15 billion spent annually just four to five years earlier. The executive did not specify a target date for reaching the $150 billion threshold.

Nvidia shares (NVDA) dipped 0.22% during Wednesday’s trading session, while Taiwan Semiconductor Manufacturing (TSM) climbed 1.93%.

NVIDIA Corporation, NVDA

The announcement propelled Taiwan’s Taiex index to an unprecedented closing high, advancing 1.7% for the day. TSMC, which serves as Nvidia’s principal manufacturing partner, finished the session up 1.3%. MediaTek surged 8.8% while Delta Electronics rose 7.2%.

Analysts expect Nvidia to surpass Apple as TSMC’s biggest client this year. The proposed $150 billion annual spending figure would actually surpass Nvidia’s own quarterly revenues — the company reported record quarterly revenue of $81.6 billion for the period ending April 26 and projects $91 billion for the current quarter.

Construction on the new Taipei office facility, dubbed Constellation, is slated to commence by year’s end. Upon completion in 2030, the complex will accommodate up to 4,000 workers in northern Taipei — quadruple the company’s present workforce in the area.

China Takes the Hit

The Taiwan expansion unfolds as Nvidia’s mainland China operations have experienced the opposite trajectory. During the latest reporting period, revenues from mainland China and Hong Kong plummeted by half compared to the previous year, while Taiwan revenues jumped over 50%.

Chinese chip manufacturers experienced significant declines Wednesday. Cambricon shares dropped 5% and Hygon slipped 7%. These companies had gained earlier in the week following Huawei’s introduction of a novel chip engineering methodology dubbed “LogicFolding,” which the company intends to implement in a smartphone processor this fall and in data center chips “around 2030.”

The Geopolitical Backdrop

The investment announcement arrives during a delicate geopolitical period. President Trump indicated earlier this month he could potentially leverage a $14 billion U.S. arms deal for Taiwan as a “negotiating chip” with China, remarks that came after his meeting with Chinese President Xi Jinping. Trump subsequently clarified that U.S. Taiwan policy remains unchanged, and separately greenlit an $11.1 billion arms sale in December.

Nvidia has simultaneously pledged $500 billion toward AI infrastructure development in the United States across four years — approximately $125 billion per year — partnering with domestic manufacturers.

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