Nvidia’s Taiwan Supply Risk Draws Focus After Huang-Shoquist Account

A Nov. 9 post by Julian Gewirtz brought Nvidia’s Taiwan supply exposure back into focus by highlighting a book account of a discussion about a potential disruption to Taiwan or Taiwan Semiconductor Manufacturing Co. (TSMC). Gewirtz previously served as senior director for China and Taiwan affairs on the Biden administration’s National Security Council.

Stephen Witt’s book The Thinking Machine recounts that Deb Shoquist, Nvidia’s executive vice president of operations, was asked how the company could keep operating if Taiwan or TSMC were disrupted. Witt’s account says Jensen Huang asked Shoquist to set aside that specific scenario. Shoquist compared the possible consequences to California sinking into the sea.

Nvidia designs graphics processing units but relies heavily on TSMC to manufacture advanced chips. The company’s supply chain also involves Taiwan-linked advanced packaging, server assembly and other components. Samsung Electronics is another chip fabricator named in the supply chain. SK hynix, Micron and Samsung supply memory, while Foxconn, Wistron and Fabrinet are involved in assembly, testing or packaging.

Nvidia says geopolitical tensions and conflicts involving China, Hong Kong, South Korea and Taiwan could affect its strategy, product demand, access to global markets and profitability. The company also says the effects of concentrating foundries and other suppliers in particular regions remain uncertain. Its business-continuity and disaster-recovery plans may not cover every disruption.