AI manufacturing boom: Why Nvidia will invest $150bn a year in Taiwan

Nvidia is planning to invest roughly US$150 billion a year in Taiwan, having dubbed the country the “epicentre” of the AI revolution.

The semiconductor giant has predicted that Taiwan will be the world’s technology manufacturing hub. With this in mind, its billion-dollar project will break ground this year and is aiming to be operational in 2030, according to company CEO Jensen Huang, to capitalise on the country’s significant AI growth.

“Four years ago, five years ago, Nvidia was spending about 10, 15 billion dollars a year in Taiwan. Now we’re spending 100, going to 150 billion dollars in Taiwan each year,” he said at a launch celebration in Taipei for Nvidia’s planned Taiwan headquarters, as reported by Reuters.

Nvidia retains its title as the world’s most valuable company, with its market capitalisation reaching a record-breaking $5 trillion on the back of the AI boom, which is driving demand for the chips that power AI systems. Its decision to invest more into Taiwan plans to “fuel an incredible ecosystem” in the country, Huang added, hoping to turbocharge AI even further.

Huang explained that Nvidia will “continue to grow” in Taiwan, with its new office able to accommodate “about 4,000 engineers”.

Taiwan is a semiconductor manufacturing leader and is home to industry giants like TSMC and Foxconn. The country’s economy rose significantly last year on account of surging AI hardware exports as companies worldwide continue to invest in AI development and deployment.

“This is going to be the manufacturing, the technology, electronics manufacturing hub for the world for a long time to come,” Huang added. “We will be here to support, to partner with our ecosystem, to do co-engineering with our ecosystem partners and to support their growth. And so, this is going to be a very important site for us.”

The news comes shortly after Huang was part of a group that accompanied US President Donald Trump on a visit to Beijing for a technology summit with Chinese President Xi Jinping to discuss trade and AI cooperation.

Nvidia is expected to be worth even more in the next few years and has informed investors that it expects data centre spending to surpass $1 trillion in 2027. It also achieved 85% growth in Q1.

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