The Nvidia-TSMC Connection
Well, $NVIDIA(NVDA)$ just got a BIG news this week.
Donald ‘Tariff’ Trump has agreed to let Nvidia export its chips to China. And that could be huge for Nvidia, and other countries that are closely related.
And by closely-related, I mean $Taiwan Semiconductor Manufacturing(TSM)$ , which supplies a lot of the chips to Nvidia.
This week, we take a look at these developments and how Nvidia and TSMC could be on the cusp of a meteoric rise.
Do you know what’s the surprising thing?
About 18% of Nvidia’s revenue comes from Singapore, with 13% and 16% coming from China and Taiwan respectively.
I am sure you all would have heard about the fact that the Trump has allowed Nvidia to sell its chips to China again.
While we have all been bombarded by news on Trump’s tariffs, I figure this will be a good time to get back down to basics.
Here’s what I think will be useful:
How selling to these countries could be good for Nvidia?
How are other companies benefitting from Nvidia’s chips?
Firstly, Nvidia’s exposure to the U.S. market has actually increased over the years. The U.S. made up about 30% of Nvidia’s revenue in 2023 (as of January 2023), but has grown to 47% by 2025 (as of January 2025).
Part of this is due to the U.S. government imposing export restrictions on chips exports (yes, even Biden did this), but most of it can be attributed to the meteoric rise in demand from U.S. companies as the AI sector boomed.
However, the danger now is that AI demand for U.S. specifically could be in danger due to Chinese AI technology that has lower cost and comparable performances.
It might be good to diversify now to other revenue sources.
Secondly, let’s look at Singapore’s contribution and contextualise the 18%. Most companies that buy Nvidia chips use Singapore as a billing location. Then, most of them will be re-exported to other countries.
Actually, only about 2% of Nvidia’s revenue is derived from Singapore. While this is low, Southeast Asia is emerging as the next hub for data centres. Specifically, Singapore and Johor, Malaysia have attracted significant data centre investments in the past years.
Meanwhile, in Taiwan, the companies that benefit are obvious. They are the ones that produces most of the chips Nvidia has currently.
China, well, this is a bit tricky. Since the export restrictions in 2023, Nvidia has been losing market share there. Huawei instead, became the biggest competitor.
But the recent DeepSeek breakthrough has sparked intense interest in China’s AI sector. Many of its tech companies are going all-in now to invest in AI.
So, here are the companies that I have identified as related to Nvidia’s developments in the AI chip industry
Singapore: CapitaLand, Keppel DC REIT, Digital CORE REIT, MapleTree Industrial
China: ByteDance, $TENCENT(00700)$ , $Alibaba(BABA)$
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