U.S.-Saudi Tech Deals Could Be Major Boon for Taiwanese Companies

TaiwanPlus News

Following a series of landmark AI investment deals between the U.S. and Gulf countries, Nvidia CEO Jensen Huang is heading to Taiwan, where local media reports say his firm will announce a new expanded office in Taipei during next week's Computex. Although Taiwanese companies weren’t present at the talks, they are expected to manufacture much of the hardware at the center of the deals, from TSMC-made chips to data center servers built by Foxconn and others.

Transcript

00:00I'm here at what is currently U.S. chip designer NVIDIA's Taipei office, but it may not be

00:05that way for long.

00:07Local media is reporting that CEO Jensen Huang may announce a new expanded office location

00:12in Taiwan next week at Computex Taipei, one of the world's largest tech trade shows.

00:18Huang arrives in Taiwan bringing good news — lots of new business.

00:21He's coming straight from the Middle East, where huge new tech deals were announced.

00:25We're talking tens, even hundreds of billions of U.S. dollars worth of new investments in

00:29AI infrastructure in Saudi Arabia and other countries.

00:33Some of the biggest names in tech, including Huang, joined President Trump on his trip and

00:37met with the Saudi Crown Prince.

00:39So what's in these deals?

00:40Well, NVIDIA says they will sell hundreds of thousands of their highest-end chips to Saudi

00:44Arabia.

00:45There's also U.S. chip designer AMD — $10 billion U.S. dollars in AI infrastructure for

00:50Saudi company Humane.

00:52More deals with OpenAI, Qualcomm, Google — the list goes on.

00:56And the moves reflect a broader strategy from the Gulf countries to transition from the world's

01:00reservoir of oil to its reservoir of computing power.

01:04Now although there were no Taiwanese company representatives in Riyadh, Taiwan may be the

01:08silent winner in these deals.

01:10And that's because nearly all of the equipment at the center of these deals is manufactured

01:14in Taiwan.

01:15NVIDIA's GPUs, AMD's AI accelerators, CPUs in Qualcomm servers — all made by Taiwan

01:22chip giant TSMC.

01:24And it goes further than that.

01:25Taiwan not only makes 90% of the most advanced chips, but also 90% of the data center servers

01:31that those chips end up in.

01:33Taiwanese companies like Foxconn, Quanta, and Wistron will likely assemble servers that

01:37will end up in Riyadh and Abu Dhabi.

01:40And that's why companies like NVIDIA may need to expand their operations in Taiwan, starting

01:45with new office space.

01:47John Hsu, Scott Huang, and Chris Gorin in Taipei for Taiwan Plus.

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