Taiwan’s Chip Show Can Continue Without Jensen Huang, Analysts Say

Business ties remain strong

Huang leads Nvidia, TSMC’s biggest customer, and has become a prominent figure in the artificial intelligence industry. Nvidia’s graphics processing units help power much of that sector, while the company provides roughly one-fifth of TSMC’s revenue.

Counterpoint Research analyst William Li said demand for advanced wafers exceeds what any one executive can influence. He said there was no sign Nvidia had slowed or reduced its TSMC orders.

Affair prompts scrutiny

Huang, Nvidia’s founder and CEO, acknowledged in a Sunday memo to employees that he had an extramarital affair. He did not identify the other person, and Nvidia’s board is examining whether he was targeted by a foreign intelligence operation.

Huang has Taiwanese roots and often visits his hometown to promote Taiwan’s role in the AI boom. Gartner analyst Gaurav Gupta said he did not see an impact on TSMC from the Nvidia controversy, and urged technology leaders not to be distracted by the investigation.

Washington poses another risk

The scandal could have broader implications if it increases US scrutiny of Nvidia. Washington has sought to restrict China’s access to advanced computing hardware, a policy Huang has opposed.

Questions may arise over Huang’s relationship with Alice Huang, formerly an executive at Megaspeed. US officials suspected the Singapore-registered company of illegally sending Nvidia chips to China; analysts said any resulting revenue hit to Nvidia, and then TSMC, remains uncertain.

Gupta said Taiwan’s supply chain and TSMC are central to the AI industry. He added that any broader shift would affect the semiconductor industry as a whole, rather than TSMC alone.