According to comments made by Minister of Economic Affairs Wang Mei-Hua on Wednesday, graphics chip designer NVIDIA Corporation has plans to move its logistics center currently located in Hong Kong to Taiwan. Wang said in an interview with the Central News Agency that the government and NVIDIA had been in conversations since the previous year over tax incentives to encourage the relocation and that the two parties had established an understanding of their respective positions.
Wang did not disclose any specific information on the schedule for the relocation or the proposed tax arrangements for NVIDIA. It is not known if the relocated logistics center would be engaged in the shipment of completed goods or components to the partner operations of NVIDIA.
According to the minister, NVIDIA’s decision demonstrates that global technology firms are not deterred from selecting Taiwan as an investment destination despite the difficulties that exist across the region. The installation of manufacturing facilities utilizing extreme ultraviolet (EUV) lithography equipment by US semiconductor manufacturer Micron, the introduction of production facilities using EUV lithography equipment by Dutch semiconductor equipment maker ASML, and the opening of artificial intelligence (AI) research and development center by NVIDIA are just a few notable instances.
In response to questions about whether or not TSMC’s investment in the United States to manufacture chips using 3-nanometer and 5-nanometer technologies would cause Taiwan to lose its industrial market position, as Japan did when its domestic technology companies expanded overseas, Wang stated that Taiwan is not like Japan. On Taiwan’s relations with the US she stated:
Taiwan does not compete directly with the US, but the countries collaborate with each other. Taiwanese companies are good at providing chip manufacturing foundry services, while US companies are specializing in chip design.
TSMC builds up US capacity to supply customers with locally manufactured chips. It is most important that TSMC is committed to investing in the most advanced chips in Taiwan.”
The decision comes after NVIDIA’s CEO visits Taiwan which was held a month ago. According to sources in Taiwan, Jensen Huang recently traveled to Taiwan to confirm TSMC would manufacture their next-generation GPU utilizing the 3nm technology. Additionally, he visited senior Taiwanese officials to discuss NVIDIA’s expansion into Taiwan as well as upcoming policies.
Source: Taipei Times