Nvidia’s $150 Billion Taiwan Commitment Sends Taiex to Record

CNBC reported Wednesday that Nvidia’s $150 billion Taiwan investment commitment sent the island’s benchmark equity index to a fresh all-time high, while mainland Chinese chip companies saw sharp declines.

Huang Puts Taiwan at the Center of the AI Revolution

CEO Jensen Huang made the announcement during an employee event in Taipei. He said Nvidia now spends between $100 billion and $150 billion annually in Taiwan. That figure represents a roughly tenfold jump from the $10 billion to $15 billion the company was deploying in the region just four or five years ago. Huang described Taiwan as “the epicenter of the AI revolution,” arguing that physical AI will fundamentally reshape manufacturing.

Alongside the spending announcement, Huang revealed plans for a new northern Taipei office complex called Constellation. Construction begins before year-end, with an opening scheduled for 2030. The facility will hold approximately 4,000 workers, four times Nvidia’s current Taiwan headcount.

Taiex Records Gains as Key Suppliers Rally

The Taiex closed 1.7% higher, marking a record finish. TSMC, Nvidia’s primary chip manufacturer, gained 1.3%. Chip designer MediaTek surged 8.8%, and power management firm Delta Electronics added 7.2%. The three companies are the Taiex’s largest constituents by market capitalisation.

Nvidia is on track to overtake Apple as TSMC’s biggest customer this year. The $150 billion annual outlay would exceed the $81.6 billion in revenue Nvidia recorded in its most recent quarter. The company has guided for roughly $91 billion in the current quarter.

China Exposure Remains a Fault Line

The backdrop to Wednesday’s announcement includes mounting regulatory friction around Nvidia’s access to mainland Chinese buyers. Revenue from Taiwan rose more than 50% year-on-year in the latest quarter, while combined revenue from mainland China and Hong Kong roughly halved over the same period.

Mainland Chinese semiconductor stocks fell sharply on the news. Cambricon dropped 5% and Hygon declined 7%. Both stocks had rallied earlier in the week after telecom giant Huawei announced a new semiconductor engineering technique called LogicFolding, which it plans to deploy in a smartphone chip this autumn and in data-centre AI chips by around 2030.

Nvidia’s Taiwan announcement also follows a separate pledge to invest $500 billion in U.S. AI infrastructure over four years alongside domestic manufacturers.

Read Next: Jensen Huang’s Nvidia Posts Record Revenue as AI Chip Demand Holds Strong