Jensen Huang Urges Restraint on AI Fearmongering, Addresses Taiwan Chip Hub and Supply Chain Diversification
Taiwan has long dominated advanced chip manufacturing through a supply chain led by TSMC, Nvidia's largest chip manufacturer. The concentration of production has also made geopolitical risk a key variable in the global expansion of AI. Separately, the U.S. Department of Defense signed a two-year AI prototyping contract worth up to $200 million with Anthropic on July 14, 2025, drawing scrutiny of safety boundaries for military applications.
Speaking at a GTC panel on March 19, 2026, Nvidia CEO Jensen Huang said technology leaders could warn about AI's capabilities but should not stoke fear with unsupported doomsday claims, as doing so could slow U.S. adoption. Addressing Anthropic's contract dispute with the Trump administration, he called for restraint. On the concentration of production in Taiwan, Huang pointed to diversification efforts in the United States, Japan and South Korea while stressing that Taiwan's semiconductor expertise deserved support.
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The history behind this eventNvidia’s Huang Says AI Buildout Will Keep Chip Downturn at Bay
The semiconductor industry has traditionally moved with consumer-electronics demand, inventory corrections and capital-spending cycles. Nvidia Chief Executive Jensen Huang argues that the current expansion is different: generative AI is forcing data centers to shift from conventional computing to accelerated computing, while companies and governments build an entirely new layer of AI infrastructure. That transition could support chip demand well beyond a typical cyclical rebound.
Huang said recently that the AI industry remains in the early stages of infrastructure deployment, making a near-term semiconductor downturn or an imminent bursting of an AI bubble unlikely. He estimated that the global chip industry could grow to five to 10 times its current size over the next decade as computing infrastructure is rebuilt. Huang did not provide a specific revenue figure, investment amount or annual timetable for that expansion.
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