TSMC Refutes False Rumor About NVIDIA CEO’s Visit to Taiwan Regarding Trump’s Suggested AI Chip Profit-Sharing Plan

TSMC Refutes False Rumor About NVIDIA CEO’s Visit to Taiwan Regarding Trump’s Suggested AI Chip Profit-Sharing Plan

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TSMC Refutes Claims Regarding NVIDIA CEO’s Visit and Profit Sharing

The Taiwan Semiconductor Manufacturing Company (TSMC) has issued a strong denial regarding recent speculations that NVIDIA CEO Jensen Huang’s trip to Taiwan was aimed at discussing a profit-sharing agreement prompted by President Trump’s administration. This discourse gained traction following the Trump administration’s approval late last month of AI GPU license sales to Chinese markets, contingent on NVIDIA sharing 15% of its revenue with the U. S.government.

Jensen Huang’s unexpected visit to Taiwan attracted widespread attention, primarily because he was there to honor TSMC’s founder, Dr. Morris Chang, and to give a speech to the workforce. His remarks in front of reporters included praise for TSMC, which he described as one of the most outstanding companies globally, and his views on recent interactions with the Trump administration.

When queried about the expected revenue sharing from NVIDIA’s H20 AI GPU sales, Huang acknowledged his gratitude for the licensing support from the Trump administration. He also expressed his astonishment at the reports indicating restrictions imposed by the Chinese government regarding the sale of his company’s H20 GPUs, stating that Chinese officials had previously requested him to obtain necessary licenses.

The origin of the profit-sharing speculation can be traced to a lesser-known Taiwanese publication that suggested Huang’s Taiwan visit was indeed related to discussions about such a proposal. In response to these claims, TSMC clarified to CNA that it maintains a solid communication channel with the U. S.government and that Huang’s purpose for visiting was simply to deliver an internal address at TSMC.

While the company has categorically dismissed the assertions regarding discussions of profit-sharing, it has refrained from commenting on an earlier analyst report that conjectured potential topics for Huang’s meeting with TSMC CEO Dr. C.C. Wei. The analyst posited that their discussions might focus on critical issues such as global production capacity allocations, strategies to minimize tariffs on NVIDIA’s products, and the intricacies of transfer pricing linked to TSMC’s chip production.

Transfer pricing, a common practice among corporations, involves determining the prices at which different divisions of a company sell products to one another, often aimed at optimizing tax obligations by shifting profits to jurisdictions with lower tax rates.

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