Jensen Huang, CEO, Nvidia, announced on Wednesday that the semiconductor designer will increase its annual spending in Taiwan to approximately US$150 billion, designating the island as the “epicenter” of the global artificial intelligence revolution.

The planned expenditure represents a significant escalation in the company’s regional investment. According to Huang, Nvidia’s spending in Taiwan ranged between US$10 billion and US$15 billion annually four to five years ago. That figure has since risen to US$100 billion and is projected to reach US$150 billion.

“Taiwan is the epicenter of the AI revolution. This is where the chips come, packaging comes, this is where the systems are made, this is where AI supercomputers were created. The number of partners we work with here in Taiwan, incredible,” Huang stated during a launch celebration in Taipei.

Infrastructure and Employment Expansion

Central to this investment is the construction of a new Taiwan headquarters, named “Constellation.” Located in northern Taipei, the office complex is scheduled to break ground later this year, with operations targeted for 2030.

The new site is expected to house 4,000 employees, quadrupling Nvidia’s current headcount in Taiwan. Huang noted that the headquarters will position Nvidia closer to its primary manufacturing partners, most notably Taiwan Semiconductor Manufacturing (TSMC). Nvidia is projected to surpass Apple this year as TSMC’s largest customer.

Beyond TSMC, the investment aims to strengthen alliances with other critical infrastructure partners, including Foxconn, Wistron, and Quanta Computer. These firms provide essential manufacturing capacity for AI servers and hardware systems.

“In Taiwan, our partners will benefit from all our technologies that will transform manufacturing,” Huang said, adding that “physical AI”—the combination of artificial intelligence and hardware—is poised to revolutionize the industrial sector.

Market Impact and Financial Context

The announcement triggered a rally in regional markets. Taiwan’s Taiex stock index rose 1.7% to a record close on Wednesday. TSMC shares finished 1.3% higher, while MediaTek and Delta Electronics saw gains of 8.8% and 7.2%, respectively.

The US$150 billion annual commitment in Taiwan exceeds Nvidia’s most recent quarterly revenue. The company reported a record US$81.6 billion in revenue for the quarter ended April 26 and has issued guidance of US$91 billion for the current quarter. For comparison, Nvidia previously announced a US$500 billion investment in US AI infrastructure over four years, averaging US$125 billion annually.

Nvidia’s market valuation recently reached US$5 trillion, a milestone Huang expects the company to exceed within the next three to five years. The company currently forecasts US$1 trillion in total sales for its flagship AI chips.

Shifts in Global Supply Chains

Nvidia’s pivot toward Taiwan comes amid shifting geopolitical and regulatory dynamics. Revenue from Taiwan increased by more than 50% year over year in the latest quarter, while revenue from mainland China and Hong Kong was cut roughly in half due to regulatory hurdles affecting high-end chip sales.

While Nvidia doubles down on Taiwan, other industry players are also expanding their presence. Advanced Micro Devices (AMD) recently announced a US$10 billion investment in Taiwan’s AI sector to expand its assembly and advanced chip capacity.

However, the region faces potential competition from emerging technologies and developments in mainland China. Huawei recently announced “LogicFolding” engineering, a new approach to semiconductor production intended for smartphone and data center chips by 2030. Additionally, some analysts have suggested that advances by US-based firms such as Neuralink could impact Taiwan’s long-term dominance in the sector.

Despite these factors, Huang maintained that Taiwan’s role as a tech manufacturing hub would remain secure for the foreseeable future. “Taiwan is booming,” he said. “This is where the systems are made.”