Key Highlights–
- Nvidia signs major AI and chip supply deals across South Korea
- CEO Jensen Huang says Asia can now “produce intelligence as a new export”
- Expansion marks a shift from US-China tensions to wider Asian partnerships.
US chipmaker Nvidia expands its global footprint through a series of high-value AI and semiconductor deals across Asia, a strategic move designed to counterbalance persistent US-China trade friction and export restrictions.
A $5 Trillion Giant Turns East
In South Korea alone, the company will supply over 260,000 of its most advanced AI chips to the government and industry giants, including Samsung, LG, Hyundai, Kakao, and Naver. The chips will power next-generation robots, autonomous vehicles, semiconductors, and smart factories, creating what CEO Jensen Huang called a new export category “intelligence.”
Huang announced the deals during the Asia-Pacific Economic Cooperation (APEC) CEO summit in Gyeongju. He emphasized that South Korea’s industrial scale, land availability, and energy access make it an ideal base for AI manufacturing and data infrastructure, as reported by The BBC.
We’re working with South Korea’s top government and industry partners to build sovereign AI infrastructure to accelerate innovation in manufacturing, automotive, cloud computing, and quantum science—unlocking new opportunities for technology and growth. #APEC2025
— NVIDIA (@nvidia) October 31, 2025
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AI Powerhouses Rise in Asia
The South Korean government plans to build sovereign AI infrastructure powered by 50,000 Nvidia chips for national data centres, boosting its goal of becoming a regional AI hub. Seoul joins Japan, India, and Singapore in expanding local AI capacity with Nvidia’s backing.
This comes as President Lee Jae Myung prioritises AI investments to offset US tariffs and position South Korea at the forefront of global tech production.
Caught Between Two Powers
The Asia expansion follows a turbulent period for Nvidia, caught in the crossfire of the US-China chip war. China once accounted for over 10% of Nvidia’s annual revenue, but American export restrictions have cut off access to its most advanced chips, including the Blackwell series.
“We used to have a 95% share of the AI business in China. Now we’re at 0%,” Huang said. He expressed hope that recent Trump–Xi trade talks could reopen limited exports, calling it “in the best interest of both nations” to restore chip cooperation.
Semiconductor Supply Chains: Asia’s Strategic Edge
Despite geopolitical hurdles, Nvidia remains deeply dependent on Asia’s semiconductor ecosystem. It designs chips in the US but outsources manufacturing to TSMC, Samsung, and SK Hynix, which produce its most advanced processors.
TSMC fabricates Nvidia’s Blackwell chips, while Samsung contributes to the scaled-down H20 processors, made specifically to comply with US export rules for the Chinese market. According to analysts, the Asia-centric production is a strategic buffer, helping it to sustain growth even when political pressure limits sales to China.
Nvidia’s Deepening Dependence on Asia
Nvidia’s expansion reflects its growing reliance on Asia’s semiconductor backbone, which produces nearly three-quarters of the world’s chips. Over 80% of Nvidia’s advanced AI processors are fabricated by TSMC in Taiwan and component suppliers like Samsung and SK Hynix in South Korea, according to the Semiconductor Industry Association.
Furthermore, the region also drives Nvidia’s demand side, with AI investments in South Korea, Japan, and India rising 35–40% annually as governments and tech giants race to build local data infrastructure, making it the powerhouse of its next phase of AI growth.
Innovation and Imitation in the Chip Race
As Washington tightens chip exports, Chinese rivals like Huawei and Alibaba have accelerated domestic innovation, unveiling AI processors that claim to rival Nvidia’s. Beijing has also reportedly restricted local firms from purchasing Nvidia products, urging them to support domestic chipmakers.
Still, Nvidia’s technology remains the global benchmark for AI computing, with Huang reaffirming that “American technology should remain the world standard.”
Beyond the West: New Frontiers for AI Investment
Nvidia’s recent partnerships, including collaborations with the US Department of Energy, Nokia, Uber, and Stellantis, indicate high investor confidence despite export challenges.
The company’s $5 trillion market valuation this week reinforces its status as the world’s most valuable chipmaker, but its next phase of growth clearly lies in Asia. For Nvidia, the region represents both a manufacturing base and a new frontier for sovereign AI ecosystems, as governments race to build infrastructure that blends local control with global collaboration.
