Tuesday, 10 Nov 2026 Breaking: "Working with Massie to lead change": Ro Khanna calls on US Congress to back impeachment of Hegseth
BREAKING: Apple launches AI platform | Tesla earnings beat estimates | Nvidia stock surges | Bitcoin crosses major resistance
Business

AI demand unlikely to be derailed by Nvidia CEO controversy, Taiwan supply chain sources say

AI demand unlikely to be derailed by Nvidia CEO controversy, Taiwan supply chain sources say

Taipei [Taiwan], November 10 (ANI): Global demand for artificial intelligence (AI) is expected to remain strong despite the controversy surrounding Nvidia Chief Executive Officer Jensen Huang, with Taiwan's semiconductor supply chain sources expecting limited long-term impact on the industry, according to a news report by Focus Taiwan.
A source from Taiwan's integrated circuit packaging and testing industry told Focus Taiwan that while the controversy could affect the supply chain over the next six months, the long-term growth outlook for AI remained unchanged.
The developments come after Nvidia launched an investigation into Huang following reports about his alleged links to a Chinese intelligence operation. Huang acknowledged in an internal memo to employees that he had been unfaithful to his wife, while the company said it believed neither national security nor its corporate secrets had been compromised.
Amid national security concerns, three Republican lawmakers have reportedly sought a closed-door meeting with Huang to question him about whether high-end chips and AI servers were being routed to China through third countries, according to the report.
The packaging and testing industry source said the United States could not afford to slow AI development amid intensifying global technological competition.
"Once the AI train starts moving, it will continue toward its destination, particularly as China is catching up rapidly," the source said.
However, the source expected the US government to tighten oversight of the AI industry and individual developers in the short term, potentially introducing new regulations for the sector.
An executive at a Taiwanese integrated circuit testing company said local suppliers had worked closely with Nvidia for decades and that such a supply chain could not be built overnight.
"It is necessary for the U.S. to continue its efforts in AI development, or its competitors will take market share away," the executive told Focus Taiwan, adding that the long-term outlook for the industry was unlikely to change.
Another executive at a Taiwanese semiconductor company said the AI industry was expected to continue expanding as major cloud service providers had pledged to increase investments in AI infrastructure to expand computing capacity.
Growing AI training requirements among other enterprises were also expected to increase demand for data centre capacity.
"Huang was not the only person responsible for creating demand for AI," the executive said, adding that even if Huang was removed through a management reshuffle at Nvidia, the company's push for AI development was expected to continue.
The executive also advised market participants to monitor possible regulatory changes in the United States, including measures by Congress and individual states concerning AI data centres and power infrastructure, according to the report.
"In the longer term, the U.S. is likely to accelerate its efforts in AI development, and this trend is expected to drive growth in Taiwan's supply chain," the executive said.
The comments come after Nvidia shares fell 5.75 per cent in out-of-hours trading on Monday following reports of an investigation into Huang's alleged links to a Chinese intelligence operation, as reported earlier by Reuters. (ANI)

Tags

Related News

India may not see US-like rise in natural interest rates despite global yield pressures: Report
Business
India may not see US-like rise in natural interest rates despite global yield pressures: Report

<p>New Delhi [India], November 10 (ANI): India's natural interest rate is likely to remain stable despite rising interes...

Indian stock markets closed for Diwali-Balipratipada; Asian markets rally, crude oil falls
Business
Indian stock markets closed for Diwali-Balipratipada; Asian markets rally, crude oil falls

<p>Mumbai (Maharashtra) [India], November 10 (ANI): Indian equity markets remained closed on Tuesday on account of Diwal...

Nvidia, CEO Jensen Huang sued by shareholders over alleged concealment of suspected Chinese spy links
Business
Nvidia, CEO Jensen Huang sued by shareholders over alleged concealment of suspected Chinese spy links

<p>Washington [US], November 10 (ANI): Nvidia and its Chief Executive Jensen Huang have been sued in a proposed class-ac...

India's credit growth accelerates to 21% in October; HSBC raises FY27 loan growth forecast to 18%
Business
India's credit growth accelerates to 21% in October; HSBC raises FY27 loan growth forecast to 18%

<p>New Delhi [India], November 10 (ANI): India's credit growth accelerated to 21 per cent year-on-year in October, led b...

Lower oil prices pull down bond yields; 10-year G-sec seen trading at 7.10-7.25%: Report
Business
Lower oil prices pull down bond yields; 10-year G-sec seen trading at 7.10-7.25%: Report

<p>New Delhi [India], November 10 (ANI): Domestic government bond yields are expected to remain softer in the near term,...

CII summit in Vizag to bring 58 countries, focus on trade, technology and investments
Business
CII summit in Vizag to bring 58 countries, focus on trade, technology and investments

<p>New Delhi [India], November 9 (ANI): Andhra Pradesh is looking to strengthen its position as a global investment and...