American chipmaker Nvidia (NVDA) plans to invest $150 billion U.S. a year in Taiwan as the global artificial intelligence (A.I.) buildout continues.
Speaking at an event in Taipei, Nvidia CEO Jensen Huang called Taiwan the “epicentre” of the A.I. revolution and said the country will remain the world’s manufacturing hub for many years.
Taiwan is home to the company Taiwan Semiconductor Manufacturing Co. (TSM), which makes about three-quarters (75%) of all the microchips and semiconductors in the world today.
TSMC, as the company is known, makes the majority of Nvidia’s processors, including is graphics processing units (GPUs) that run A.I. workloads.
Now, Nvidia is opening a new headquarters in Taipei, Taiwan’s capital city. The project will break ground this year and be operational in 2030.
Few other details on Nvidia’s planned $150 billion U.S. annual investment in Taiwan were disclosed by Huang.
Analysts say the Taiwan headquarters will bring Nvidia closer to TSMC, the world’s largest contract chipmaker.
It will also help Nvidia strengthen its alliances with other Asian manufacturing partners such as Foxconn and Wistron that play key roles in the buildout of A.I. infrastructure.
NVDA stock has gained 14% this year to trade at $214.86 U.S. per share.
