Jensen Huang Ouster Risk Puts Taiwan Chip Supply Chain on Edge, Expansion May Slow

At a glance

Concerns are growing in Taiwan's chip industry as Nvidia CEO Jensen Huang faces a higher chance of being removed. If his aggressive approach to production capacity changes, Taiwan's suppliers may slow their investment and expansion.

Key points

1. 1

   Taiwanese Nvidia suppliers are reviewing how future leadership could change their expansion plans.

2. 2

   Huang has worked closely with TSMC and others, and in May said he planned to invest about $150 billion a year in Taiwan.

3. 3

   Taiwan's TSMC shares fell about 2% that day, while in Korea SK hynix dropped 1.6% and Samsung Electronics rose 0.8%.

4. 4

   Huang has not named a successor, and the market sees Ian Buck and Colette Kress as possible candidates.

Why it matters

The chip supply chain and Nvidia's management direction could both be affected, which could matter for the whole semiconductor market.