Two weeks ago, Nvidia CEO Jensen Huang made a surprise visit to Taiwan where he met TSMC for a few hours. It was a short stay but it sparked customary rumors pertaining to why he was there. Originally, it was thought to be just a routine check-up on the upcoming Vera Rubin chips that TSMC is manufacturing for Nvidia. However, amidst the thought pool, a report had claimed that Huang was actually there to deliver a message from President Trump over revenue sharing — a claim that has now been shut down by TSMC.
Earlier in August, the Trump administration struck an informal deal with semiconductor companies such as AMD and Nvidia to share profits. In exchange for permission to sell their chips in China, these companies would give 15% of the profit to the government. TSMC, so far, does not fall under this arrangement and that's where the original rumors stem from. Jensen's visit was claimed to be moonlighting as an envoy for the U.S. government, conveying some sort of message through a mutually important liaison.
According to FocusTaiwan, TSMC has since rejected these rumors and clarified that Huang was there to attend a belated birthday event for founder Morris Chang. Huang also gave an internal speech to the workers at TSMC. Later that day, CEOs from both sides, along with other suites at the company, also had dinner where Taiwanese media caught Huang and TSMC CEO C.C. Wei engaging in lighthearted banter over who'd pay for dinner. Wei said he'd pick up the check if Huang agrees to his wafer pricing, to which Huang cheekily replied with "I agree with your wafer pricing."
At the time of the visit, TSMC was asked about the Trump administration's unprecedented move to acquire stakes in American companies, sometimes by converting grants into equity, and CEO Wei replied with "They have already announced that they will not take shares." Apparently, there is no need for secretive talks or any back-alley deals because, ultimately, TSMC falls outside of U.S. jurisdiction. Owing to this, TSMC reiterated yesterday that it has smooth and positive communication with the White House.
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