Taipei: U.S.-based artificial intelligence chip designer Nvidia Corp. and Taiwan Semiconductor Manufacturing Co. (TSMC) have entered into a partnership for the development of silicon photonics, as per Jensen Huang, founder and CEO of Nvidia. Speaking to reporters in Taipei following a meeting with TSMC Chairman C.C. Wei, Huang stated that while the collaboration is in progress, tangible results may not materialize for several years.
According to Focus Taiwan, TSMC and ASE Technology Holding Co. have initiated the Silicon Photonics Industry Alliance (SiPhIA), involving over 30 Taiwanese firms, to engage in the silicon photonics supply chain. Silicon photonics employs silicon as a medium for optical transmission, offering benefits such as low power consumption, extensive transmission distance, and reduced costs. As AI applications surge, energy efficiency has become a key focus area.
Huang acknowledged the support from TSMC's employees, which has facilitated Nvidia's production improvements amid rising demand for AI applications. During his Taiwan visit, he also met with other business partners and noted the strong global demand for Nvidia's Grace and Blackwell GPUs. Huang expressed gratitude to partners, including Hon Hai Precision Industry Co., Quanta Computer Inc., Wistron Corp., Wiwynn Corp., Giga-Byte Technology Co., Siliconware Precision Industries Co. (SPIL), and Cooler Master Co., for their contributions.
Huang emphasized Nvidia's role in laying the groundwork for future computer development and predicted that the AI industry would dominate global industrial development. He anticipated several trillion U.S. dollars in business opportunities and underlined the necessity of rapid growth for Nvidia to meet market trends, crediting Taiwanese partners for their continuous support.
On a related note, Huang attended the opening of a new SPIL plant in Taichung, highlighting SPIL's importance as Nvidia's long-term partner in AI-related GPU and robot development. He noted a tenfold growth in cooperation scale with SPIL over the past decade and a 200% increase from 2024, citing their longstanding partnership in high-end IC packaging and testing development. Nvidia's shift to duel-die CoWoS technology in Blackwell CPU production is ongoing, while CoWoS-S technology remains in use for Hopper GPU manufacturing. Huang expects a significant increase in CoWoS service orders this year.
Industry sources suggest Huang's SPIL visit aimed to secure CoWoS production, with SPIL anticipated to gradually increase production starting from the second quarter. Huang is scheduled to meet with other Taiwanese suppliers, though details were not disclosed.
Additionally, Huang revealed Nvidia's plans to establish headquarters outside the United States, with a potential location in Taiwan to accommodate the company's growth and operational needs.