Nvidia’s push into physical AI sparks rally in partners

https://www.taipeitimes.com/News/biz/archives/2026/05/04/2003856693

Publish Date: 2026-05-03 12:00:00

Source Domain: www.taipeitimes.com

Certainly! Here’s a summary of the article presented in an unordered list, focusing on key points:

Growing Asian Business Partnerships with Nvidia:
- Several Asian companies, including LG Electronics Inc (South Korea), Nanya Technology Corp (Taiwan), Huizhou Desay SV Automotive Co (China), and Pateo Connect Technology Shanghai Corp (China), have reported rallying in response to new partnerships, supply-chain participation, or product collaborations with Nvidia Corp.
Asia’s Dominance in Nvidia’s Supply Chain:
- Asian suppliers now account for around 90% of Nvidia’s production costs, up from 65% the previous year, as shown by Bloomberg data.
Rising Reliance on Asian Supply Chains:
- The surge in demand for AI chips and products has deepened Nvidia’s dependence on Asian markets for manufacturing, assembly, and essential components.
Shift Towards Physical AI:
- Beyond semiconductor partnerships, new collaborations are extending into physical AI, covering robotics, autonomous systems, and AI-enabled manufacturing, highlighting Asia’s increasing role in these areas.
Nvidia’s Vision for Physical AI:
- CEO Jensen Huang envisions physical AI as the next big wave after generative AI, emphasizing the growing demand across various industries for tech suppliers to expand into the AI supply chain.
Accelerating AI Spending:
- Leading US tech companies such as Amazon, Microsoft, Meta, and Alphabet are collectively committing over $1 trillion to AI spending in the current year, with Nvidia being a significant contributor.
Secondary Beneficiaries and Market Impact:
- Hon Hai Precision Industry Co (Foxconn) remains a notable secondary beneficiary in Microsoft and Amazon’s spending plans, while SK Hynix holds a mid-single-digit share across several companies.
Asia’s Integral Role in AI Technology:
- Asia’s established technological base, particularly in advanced semiconductors and robots, forms a strong foundation for the implementation and advancement of physical AI.