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The Taiwan Semiconductor Manufacturing Company (TSMC) has denied that a recent visit by NVIDIA CEO Jensen Huang to Taiwan was to discuss a purported demand from President Trump to discuss profit sharing. The Trump administration came into the limelight last month after it approved NVIDIA's China H20 AI GPU licenses on the condition of sharing 15% of the sales with the US government. Huang's visit to Taiwan caught many by surprise, and the NVIDIA CEO outlined that he was on the island to address TSMC's workers on a day honoring the firm's founder, Dr. Morris Chang.
No, NVIDIA CEO Did Not Visit Taiwan To Discuss Profit Sharing, Says TSMC
After Huang landed in Taiwan, he addressed reporters and not only called TSMC one of the greatest companies on Earth but also commented on his discussions with President Trump. When asked about having to share 15% of NVIDIA H20 AI GPU revenue with the US government, Huang replied that he was "very grateful that the Trump administration has approved licenses for our Chinese customers." The NVIDIA CEO also expressed surprise at reports of his firm's H20 GPUs being restricted for sale by the Chinese government, since, according to him, Chinese officials had requested him to secure the licenses for the products.
Now, after a report by a relatively unknown Taiwanese publication claimed that the real reason behind Huang's Taiwan visit was to discuss a purported profit-sharing proposal for TSMC's chips proposed by President Trump, TSMC has denied the claim. Speaking to CNA, the firm shared that it has a stable, robust communications channel with the US government, and the NVIDIA CEO visited TSMC to give an internal speech.
While TSMC has officially denied the rumors of Huang's visit with regards to a purported profit-sharing agreement between the firm and the US government, it did not comment on an earlier analyst report which had also speculated on the reasons behind the NVIDIA CEO's visit.
Speaking to the Economic Daily, the analyst speculated that Huang and TSMC CEO Dr. C.C. Wei could discuss global production capacity allocation, tariff minimization for NVIDIA's products, and transfer pricing for TSMC's chips. Transfer pricing is typically used by corporations to reduce their internal tax burden, and it involves the price that firms use to transfer products between subsidiaries or within the corporation to shift profits to regions with lower tax rates.
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