Nvidia CEO Praises TSMC, Unveils Expansion Plans in Taiwan

Huang Praises TSMC, Announces New Projects in Taiwan

Nvidia CEO Jensen Huang lauded Taiwan Semiconductor Manufacturing Co. (TSMC) as "one of the greatest companies in the history of mankind," adding that anyone wanting to buy its stock is a "very smart person." TSMC shares have risen more than 15% this year.

During a brief visit to Taiwan, Huang revealed that his trip was to thank TSMC for completing the design of six new chips for Nvidia, including a new GPU and a silicon photonics processor for Nvidia's next-generation "Rubin" architecture supercomputer. After chip designs are finalized, the mass production preparation phase begins.

"This is the first time in our company's history that all the chips are brand new and revolutionary," he said. "We've completed all the chip designs."

NVIDIA Constellation Project and Expanding Operations in Taiwan

Furthermore, Huang expressed Nvidia's eagerness to start the "NVIDIA Constellation" project, a new office location in Taiwan intended to accommodate Nvidia's growing team in the region. He indicated that the company is working with local authorities to resolve some issues and expedite the start of construction.

"We have many, many employees in Taiwan, and the number is still growing, because our supply chain is extremely busy here," he added. "We work with chip companies, system vendors, and system manufacturers all over Taiwan, and everyone is working hard for us, so we need a large number of engineers to work alongside them."

CHIPS and Science Act and TSMC Investments in the U.S.

Huang's visit comes as the U.S. government plans to offer grants under the CHIPS and Science Act in exchange for equity stakes in chipmakers. Earlier this week, reports surfaced that the U.S. government is considering investing in companies like Micron Technology, Samsung, and TSMC, following plans to acquire a 10% stake in Intel.

The CHIPS and Science Act, passed with bipartisan support in 2022, aims to revitalize U.S. leadership in semiconductor manufacturing by providing subsidies and loans to chipmakers expanding production in the United States.

Under the Act, TSMC has been promised $6.6 billion in funding to build three cutting-edge fabs in Arizona. The first fab (P1) already began production in the fourth quarter of last year, and the second fab (P2) is expected to begin production in 2027.

Performance of TSMC's Arizona Fab

TSMC's Q2 2025 financial report showed that its Arizona fab achieved profitability for the first time after four years of losses, with a net profit of NT$6.447 billion, accounting for 1.62% of TSMC's after-tax net profit in Q2. Despite the profitability, the sustained profitability of the fab remains to be seen.