NVIDIA Corp. CEO Jensen Huang announced on Wednesday that the artificial intelligence (AI) chip giant plans to ramp up its annual spending in Taiwan to about $150 billion.
Terming the island the “epicenter” of the global AI revolution, Huang predicted that Taiwan would sustain its position as the world’s premier technology manufacturing hub for the foreseeable future.
The projected figure represents a tenfold increase in local expenditure over the last five years. “Four years ago, five years ago, NVIDIA was spending about $10 to $15 billion a year in Taiwan. Now we’re spending $100, going to $150 billion in Taiwan each year,” Huang said during a launch celebration in Taipei.
The centerpiece of NVIDIA’s localized expansion is a planned multibillion-dollar Taiwan headquarters and office complex named Constellation. Located in northern Taipei, the project is scheduled to break ground later this year with an operational target date of 2030.
The new campus is designed to accommodate 4,000 employees, effectively quadrupling NVIDIA’s current headcount on the island. While Huang did not specify the exact duration of the $150 billion annual commitment, the capital injection aligns with NVIDIA’s aggressive global infrastructure strategy. For comparison, the company has also committed $500 billion over four years to U.S.-based AI infrastructure.
The strategic move places the $5 trillion chip designer in closer proximity to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker and NVIDIA’s primary manufacturer. Analysts project NVIDIA will surpass Apple Inc. this year to become TSMC’s largest customer. The expansion will also fortify NVIDIA’s alliances with key electronics ecosystem partners, including Foxconn, Wistron, and Quanta Computer, which are critical to the assembly of high-end AI servers.
Tech analyst Jack Gold said most of the money will go to TSMC as NVIDIA expands chip production. But it also indicates that “Jensen sees a number of newish companies in Taiwan that are addressing a number of capabilities that are needed, like new memory production, as well as some offshoots of TSMC that are trying to ramp up some chip making capabilities and new packaging and cooling,” he said.
“There are also some system builders that could be assembly points for NVIDIA racks and data center components,” Gold said. “Taiwan is a very dynamic environment right now for the whole AI space, including some companies building out models for specific needs. Of course, mainland China is still the cloud hanging over all Taiwan investments. It’s a big unknown, especially as the Trump Administration seems to be softening its support.”
Following the announcement, Taiwan’s benchmark Taiex stock index rallied 1.7% to a record close. Shares of TSMC ticked up 1.3%, while chip major MediaTek surged 8.8% and Delta Electronics climbed 7.2%. Market optimism was further bolstered by news that memory chipmakers SK Hynix and Micron had both reached the $1 trillion market capitalization milestone.
Conversely, NVIDIA’s deepening commitment to Taiwan underscores its shifting regional revenue dynamics amid intensifying U.S. regulatory restrictions. NVIDIA’s recent quarterly earnings report revealed that revenue from Taiwan surged by more than 50% year-on-year, while its revenue from mainland China and Hong Kong halved.
“Taiwan is the epicenter of the AI revolution,” Huang told an audience of 1,000 employees, local officials, and family members. “This is where the chips come, packaging comes, this is where the systems are made, this is where AI supercomputers were created.”
The massive investment arrives despite countermoves in mainland China, where telecom giant Huawei recently announced alternative manufacturing engineering slated for data center chips by 2030. Concurrently, regional rivals like Advanced Micro Devices Inc. are also pivoting heavily toward the island, having recently announced a $10 billion strategic AI investment in Taiwan to secure advanced packaging and production capacity.
