The foreign relations of the United States are no longer a solely governmental matter. Figures like Tim Cook they have acting as ambassadors in recent years, receiving treatment and baths from political entities worthy of a high-ranking politician, and the baton in both the global technological and economic conversation has been taken by another CEO of a ‘Big Tech’. Jensen Huang He is the boss of NVIDIA, and recently has visited Taiwan to remember something key: Nvidia would not be possible without Taiwan.
And he has taken the opportunity to put pressure on the factory that moves the technological world: TSMC.
The Billion Dollar Dinner. Huang has been touring his home island of Taiwan. Curiously, it is also the epicenter of the global technology industry as it is home to companies as powerful as asus or MediaTek, but also from Foxconn and those who create most of the advanced chips in our devices: TSMC.
To close out the trip, Huang met two dozen people for dinner at a local restaurant in the event dubbed by the press as “the billion-dollar banquet.” More than a dinner with friends, it is an institutional event because NVIDIA is the one that is calling the shots in this current era of AI, but TSMC is the one who has the upper hand.
Get your batteries. In that environment, and in an improvised manner, a press conference was held in which Huang made it clear that 2026 will be a crucial year, but he also gave an interesting headline: TSMC needs to work very hard this year because I need a lot of wafers.” Local media reported it. crossed out It may be a joking comment, but it is one of those jokes that are not jokes.
The CEO of NVIDIA added what TSMC is doing”an incredible job” and predicted that they will increase their capacity by more than 100% over the next decade.” No pressure, go.
TSMC is key. Just a few weeks ago, TSMC announced that its spending would increase by almost 40% to reach $56 billion in 2026, with additional increases planned for both 2028 and 2029. It makes perfect sense considering that it is the company that factory not only almost all of the world’s advanced chips, but it is the heart of NVIDIA’s graphics cards that have become the standard of artificial intelligence.
The Taiwanese company is not only manufacturing in its country, but is taking steps to expand throughout Europe (with the Germany’s vaunted factory) and you already have a plant in the United States that will expand in the short term. And NVIDIA itself will be one of the first customers of the advanced chips that TSMC produces on US soil.
If the chain fails, the AI gets into trouble. The problem is that Huang doesn’t just need wafers: he needs RAM, and we are in one of the component crises deepest in history. That unbridled spending on components for powering data centers for AI It has left us consumers without the opportunity to buy components for our PC at a consistent price. First was the RAM and then the SSDs because companies like TSMC, Micron or Samsung cannot cope with production.
Some -the aforementioned Micron- has left the component market for consumers because they need to run all their plants for only one purpose: powering those data centers. And the chain cannot failsomething that Huang himself has stated, pointing out that they will need a lot of memory this year – graphics cards also have memory inside – and that “the entire supply chain will be a challenge in 2026 because demand will be much greater.
In short: a challenge for manufacturers, a headache for users. For Huang, a blessingsince your company is the one that leads the way in an artificial intelligence that, according to him“it has become something really useful.”
GIPHY App Key not set. Please check settings