Nvidia very likely to invest in Europe
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Nvidia has its eyes on Europe, with the company's CEO revealing that the firm could expand into the bloc soon.
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An Nvidia Corporation sign is shown in Santa Clara, California, United States, May 31, 2023 (AP)
Nvidia is "extremely likely" to invest in Europe, the CEO of the world's most valuable chipmaker said Sunday.
Jensen Huang told reporters that expanding in Europe was a "wonderful idea."
If it were to invest in Europe, Nvidia would join other giants in the semiconductor industry, the likes of Intel, that are looking toward the land across the Atlantic to set up shop with the help of government subsidies.
Read more: France to allocate $3.1bln of state aid to microchips factory
"I would say it is extremely likely and the reason for that is because Nvidia would like to be a global international company and who could imagine a better place to invest in," Jensen explained.
The firm making highly valuable chips in light of the AI boom has seen a stark hike in value, reaching $1 trillion in recent weeks after its last quarterly earnings blew the expectations out of the water.
"AI is about data, AI is about algorithms, and AI is about computing power," said EU Internal Market Commissioner Thierry Breton after his meeting with Huang at the company's headquarters in Silicon Valley.
"Computing power is thanks to companies like Nvidia," he said.
The European Union is seeking US firms and vice versa due to Washington's sanctions on China and its chip industry.
Currently, China and Taiwan have the dominant share in the global market of chip exports, but the new plan adopted by the EU aims to double Europe's market share to 20% by 2030 and allocate 43 billion euros ($47.2 billion) in public and private investments to fulfill the continent's growing demand of semiconductors.
The bloc will also invest 3.3 billion euros in research and development, in addition to building special facilities for the project and a monitoring system to deliver an early warning in case of supply shortages to prompt the EU in reacting quickly and efficiently.
The United States, Japan, and South Korea have already initiated plans to increase chips productions and develop their tech sector. Washington passed the Chips and Science Act last August which will allocate $52 billion to boost the sector, while its Asian allies also released multi-billion dollar projects to keep track.
STMicroelectronics, US-based GlobalFoundries, and US tech giant Intel announced plans last year to invest billions of dollars into new production facilities in France and Germany, where they will be able now to receive subsidies for their plans under the new European agreement.
Washington has leaned on allies including Japan and the Netherlands this year to curb exports of semiconductor technology to China, much to Beijing's chagrin.
"Europe aims to become an industrial powerhouse in the markets of the future -– the digital and clean technologies that will allow us to remain a competitive export force, generate quality jobs and ensure our security of supply," the bloc's internal market chief noted.
