Taiwan supply chain sees limited impact from Nvidia CEO controversy on AI demand

Taiwan semiconductor supply chain executives expect global AI demand to remain strong despite the controversy surrounding Nvidia CEO Jensen Huang, with limited long-term industry impact anticipated. The assessment follows Nvidia's investigation into Huang over alleged links to a Chinese intelligence operation. A Taiwanese packaging and testing industry source said the controversy could affect the supply chain over the next six months, but the long-term AI growth outlook was unchanged. The source noted the US could not afford to slow AI development amid intensifying global competition, particularly as China catches up rapidly. Executives said local suppliers had worked with Nvidia for decades, and major cloud service providers had pledged increased AI infrastructure investment. They advised monitoring potential US regulatory changes, while Nvidia shares fell 5.75 per cent in out-of-hours trading Monday following the investigation reports.