Nvidia's Asian supply chain prepares for life after Jensen Huang

Taiwan's and South Korea's chip partners and suppliers of Nvidia are reshaping plans in anticipation of Chief Executive Jensen Huang's potential ouster due to reports of two extramarital affairs. Nvidia's board is meeting on November 11 to decide Huang's future, a shift from their previous confidence expressed on November 8. An executive from a Taiwan supplier expressed concern that the new CEO might not be as aggressive as Huang in securing manufacturing capacity, which could slow his company's expansion.

Huang has not named a successor, but analysts predict Ian Buck and Colette Kress as likely candidates. Huang's long-term strategy and leadership have turned Nvidia's cash reserves into a funding source for AI companies and infrastructure deals. Analysts predict a slowdown in aggressive investments and lucrative bilateral AI deals without Huang.

Any setback for Huang could hinder the AI industry's growth. Huang's supplier network in Taiwan, strengthened through frequent visits, allows Nvidia to deliver aggressive product upgrades and secure supply chain investments. The potential leadership change could impact TSMC, SK Hynix, and Samsung Electronics, with shares in TSMC falling 2% and SK Hynix 1.6%.

In China, AI companies are seeking to secure access to Nvidia chips, fearing Washington may tighten restrictions on remote access to advanced processors following the scandal.