Jensen Huang: Doing Business with Taiwan is Not 'Rough and Ready' but Highly Cost-Effective

NVIDIA (NVDA-US) CEO Jensen Huang attended the opening ceremony of Wistron's (3231-TW) Texas factory on the 22nd and, when asked about past business with Taiwan being 'rough and ready,' pointed out that today's Taiwan is highly cost-efficient. Huang stated that Taiwan is at the top level in chip manufacturing and electronics manufacturing and that Taiwanese people should be very proud of their advanced and excellent technology.

Huang mentioned that while Taiwan is at the forefront in chip manufacturing and electronics manufacturing, the rapid growth of AI has led to rapid expansion of Taiwanese companies and factories, facing challenges in energy supply. Therefore, Huang believes that a global supply chain needs to be established to support strong demand, and cooperation with TSMC (2330-TW), Hon Hai (2317-TW), Wistron, and other Taiwanese companies, as well as investment and factory establishment in the United States, is a very good cooperative relationship, and the United States is very grateful.

However, Huang also frankly stated that in the United States, including living costs and manufacturing costs, are very high, and the local ecosystem supporting factories is not that well-established. Although it takes time to build, the current demand is so strong. He also pointed out that reindustrialization is necessary for the United States and is very important for global economic balance.

Huang further mentioned NVIDIA's three major hubs for AI manufacturing in the United States: California is mainly used as a product design base, then to Arizona, and finally to Texas for manufacturing, supplying to the entire United States through the three major manufacturing centers in California, Arizona, and Texas.

With the launch of Wistron's Texas D1 new factory, Huang pointed out that the D1 factory accounts for about 5% of NVIDIA's total capacity, but the demand is so strong that NVIDIA's business continues to grow every year, and it may be very difficult for the supply chain to keep up in the future, so more factories will definitely be needed, and there will absolutely be a D2 factory.