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The Taiwan Semiconductor Manufacturing Company (TSMC) has officially denied a recent rumor suggesting that NVIDIA CEO Jensen Huang’s visit to Taiwan was to discuss a profit-sharing proposal with President Trump. The Trump administration had previously approved NVIDIA’s China H20 AI GPU licenses, requiring the company to share 15% of sales with the US government.
No, NVIDIA CEO Did Not Visit Taiwan To Discuss Profit Sharing, Says TSMC
Upon landing in Taiwan, Huang addressed reporters and praised TSMC as one of the greatest companies on Earth. He also commented on his discussions with President Trump but expressed surprise at reports suggesting that he had to share profits from NVIDIA’s H20 AI GPUs with the US government. Huang stated that he was “very grateful” for the administration’s approval and was surprised by claims that the Chinese government had restricted sales of these GPUs.
Regarding a report by an unknown Taiwanese publication claiming Huang’s visit was to discuss Trump’s proposed profit-sharing for TSMC, TSMC issued a statement through CNA. The company confirmed it has a stable communication channel with the US government and clarified that Huang visited TSMC to deliver an internal speech.
While TSMC officially denied the rumor about a profit-sharing agreement, it did not comment on earlier analyst reports that speculated on the reasons behind Huang’s visit. One such report suggested Huang and TSMC CEO Dr. C.C. Wei might discuss global production capacity allocation, tariff minimization for NVIDIA’s products, and transfer pricing for TSMC’s chips.
Transfer pricing is a strategy used by corporations to minimize their tax burden by setting the price of transactions between subsidiaries or within the corporation. This can involve shifting profits to regions with lower tax rates.
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