TAIPEI, Feb 1, 2026, 21:27 (GMT+8)
- Nvidia CEO Jensen Huang has pushed major Taiwan suppliers like TSMC to ramp up production amid soaring AI demand straining their capacity.
- Huang pointed out the tight supply of memory chips, which are crucial for AI servers, describing the supply chain as “challenging”.
- The visit wrapped up a high-profile Taiwan trip, highlighted by a “trillion-dollar dinner” attended by roughly two dozen tech executives.
Nvidia CEO Jensen Huang urged Taiwan’s leading chip and server makers to ramp up output to keep pace with soaring AI demand after hosting a dinner with top execs in Taipei. “TSMC needs to work very hard this year because I need a lot of wafers,” Huang told reporters, referencing the silicon discs used to make chips. (Reuters)
Nvidia’s growth depends on how fast it can convert orders into delivered AI chips and complete servers, and a large chunk of that process goes through Taiwan’s manufacturing network. Its most advanced processors need cutting-edge contract production and packaging capacity, which is already stretched thin.
Huang flagged a bottleneck beyond Nvidia’s chips: memory supply. “We need a lot of memory this year,” he said, describing the supply chain as “challenging” amid rising demand. TSMC, responding to AI-driven needs, announced capital spending could surge by up to 37% this year, reaching $56 billion. (CNA)
Taiwan media dubbed Saturday’s event the “trillion-dollar dinner,” referencing the combined market value of the companies in attendance, according to Taiwan News. The lineup featured TSMC’s C.C. Wei, Foxconn chairman Young Liu, Quanta Computer chairman Barry Lam, plus executives from MediaTek, Asus, and others. (Taiwan News)
Huang stood in the rain outside the restaurant, offering praise with a subtle prod. He described TSMC as “incredible” and noted strong demand, all after snapping photos with Wei, who declined to answer reporters’ questions.
Huang, originally from Taiwan and raised in the U.S., has attracted sizable crowds on this trip. Local media have even nicknamed him “the people’s dad.” Throughout the dinner, he kept stepping out to shake hands and sign autographs for fans.
This scene highlights Taiwan’s critical role in the AI infrastructure race, alongside growing strain on its manufacturing capacity. The island’s contract makers put together a large share of the world’s AI servers. At the same time, rival chip designers are battling for the same foundry slots and components, all vying to cut into Nvidia’s market hold.
“We have so many partners here in Taiwan. Nvidia wouldn’t exist without Taiwan,” Huang said when asked about the attention he receives on visits. “I’m really proud of Taiwan.”
Huang flew in from China on Thursday and is set to depart Monday, according to Reuters. Taiwan News noted he’s scheduled for another dinner with TSMC’s top brass on Sunday.
The supply ramp isn’t guaranteed to go off without a hitch. Memory shortages could get worse if demand keeps beating expectations, and any hiccup in the island’s dense production network would quickly send shockwaves through global AI hardware shipments. Equally crucial is the uncertain pace of spending on AI data centres after that initial surge in capacity is up and running.
