Nvidia CEO Jensen Huang delivered his strongest public endorsement yet of TSMC during a Taiwan visit Friday, calling the chipmaker "one of the greatest companies in the history of humanity" just as the US government explores taking equity stakes in semiconductor firms through CHIPS Act funding negotiations.
The timing of Jensen Huang's effusive praise couldn't be more strategic. Standing in Taiwan Friday, the Nvidia CEO didn't just thank TSMC for manufacturing his company's next-generation Rubin AI chips—he positioned the Taiwanese foundry as an unmissable investment opportunity just as Washington weighs unprecedented government stakes in the semiconductor industry.
"Well, first of all, I think TSMC is one of the greatest companies in the history of humanity, and anybody who wants to buy TSMC stock is a very smart person," Huang told reporters, according to CNBC's coverage. The endorsement comes as Commerce Secretary Howard Lutnick confirmed this week that the administration is in talks for a 10% equity stake in Intel and considering similar moves with other chipmakers.
Behind Huang's public diplomacy lies a deepening strategic partnership. TSMC is currently developing six new products for Nvidia, including advanced central processing units and general processing units specifically designed for AI computation. This expanded collaboration underscores how critical the Taiwanese foundry has become to Nvidia's dominance in the AI chip market, where the company commands roughly 80% market share.
The backdrop is the $52 billion CHIPS Act, which has transformed from a manufacturing incentive program into a potential vehicle for government ownership in the semiconductor supply chain. TSMC secured $6.6 billion in promised funding to build three cutting-edge fabrication plants in Arizona, while and are also receiving substantial support.
