Nvidia announced an investment of 150 billion TWD in Taiwan, boosting Taiwanese chip stocks!

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Nvidia is significantly increasing its investment in the Taiwan region, with CEO Jensen Huang announcing on Wednesday that Nvidia will build a new campus in Taiwan and raise its annual spending to $150 billion, driving the Taiwan Weighted Index up 1.7% to a record high that day.

Jensen Huang stated in Taipei that Nvidia's annual spending in Taiwan will increase from the current $100 billion to $150 billion, whereas just four or five years ago, this figure was only $10-15 billion. Meanwhile, Nvidia plans to start construction of a new office campus named "Constellation" by the end of this year, located in northern Taipei, which is expected to accommodate 4,000 employees upon completion in 2030—about four times the current number of Nvidia employees in Taiwan.

TSMC shares rose 1.3% that day, MediaTek surged 8.8%, and Delta Electronics climbed 7.2%. South Korea's SK Hynix and the US's Micron Technology also joined the $1 trillion market cap club that day, further boosting market sentiment.

Spending Scale Exceeds Quarterly Revenue

The $150 billion annual regional spending plan will become one of Nvidia's largest spending commitments to date, even exceeding the company's quarterly revenue level. Nvidia recorded a record $81.6 billion in revenue for the quarter ending April 26, and expects revenue to reach $91 billion this quarter.

For comparison, Nvidia previously announced it would invest $500 billion in the United States over the next four years to build AI infrastructure, equivalent to about $125 billion of annual US value creation. The annual spending scale in Taiwan now exceeds this figure.

Nvidia is responsible for chip design, while TSMC handles manufacturing. Nvidia is expected to surpass Apple this year to become TSMC's largest customer.

Jensen Huang positions Taiwan as the "epicenter of the AI revolution," stating that the "physical AI" formed by combining artificial intelligence and hardware will profoundly change manufacturing, and "partners will benefit from all our technologies that can transform manufacturing." Latest quarterly data shows Nvidia's revenue from Taiwan has increased over 50% year-on-year.

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