NVIDIA CEO Jensen Huang Believes That The US Needs “Decades” For Chip Supply Chain Independence
NVIDIA CEO Jensen Huang Believes That The US Needs “Decades” For Chip Supply Chain Independence
NVIDIA's CEO Jensen Huang has expressed that the United States needs more than a "decade" to achieve chip supply chain independence.
In an interview at the Dealbook Summit, NVIDIA's CEO Jensen Huang said that the US's aim towards being self-reliant in the chip industry is a rather "difficult" one, as the fact that the global supply chain is well "diverse" with a major share coming from firms like TSMC, hence combining them all in a single nation isn't an easy task to do.
We are somewhere between a decade or two decades away from supply chain independence, as I mentioned earlier, our systems comes from 35,000 parts, and eight of them comes from TSMC. Supply chain independence is going to be challenging but we are going to try it and we should endevaour it but total independence of supply chain isn't practical for a decade or two.
The US is currently in a race to achieve global semiconductor dominance, and in the past five years has accelerated its efforts to set up in-house production facilities. Moreover, through incentives like the CHIPS Act, the US poured somewhere around $52 billion into the markets in the form of subsidies, tax credits, and covering up costs of R&D. It was seen as one of the biggest packages offered to tech firms ever, which ultimately prompted chip companies like TSMC and Intel to capitalize on it through setting up their foundries in the US. However, despite the "rigid" efforts by the state, neither of the above-mentioned developments has reached a conclusive stage yet.
If we talk about the feasibility of the US in terms of achieving independence within the chip industry, it is something that isn't going to happen in a shorter period, given that not only does the construction of cutting-edge facilities take time, but putting them at their "production" stage is difficult initially as well. Moreover, companies like TSMC are also hesitant when it comes to actually producing their high-end processes somewhere other than the US since there is always a risk of technology transfer, and this concern has also been shown by Taiwan officials.
The statement by Jensen Huang pretty much sums up the whole scenario, as the idea of "chip independence" is entertaining but it isn't something that will happen overnight. It will be interesting to see how the future evolves for the US and the semiconductor industry in itself as well.
News Source: The New York Times
What's Your Reaction?
