Taipei: Nvidia founder Jensen Huang on Saturday lauded Taiwan Semiconductor Manufacturing Co. (TSMC), calling the chipmaker that helped his own company build its AI empire the “pride of the world.”

According to Focus Taiwan, Huang expressed his gratitude at TSMC’s Sports Day held in a stadium in Hsinchu County. He emphasized the essential role TSMC has played in Nvidia’s success, stating, “Without TSMC, there is no Nvidia today.” Huang hailed TSMC as not only the pride of Taiwan but also the pride of the world, acknowledging their three-decade-long collaboration that has seen both companies rise to prominence in their respective fields.

Veteran tech reporter and commentator Owen Lin, who has covered TSMC for over thirty years, supported Huang’s sentiments. Lin explained that TSMC has significantly contributed to Nvidia’s achievements, including accomplishing tasks deemed impossible by others. He highlighted TSMC’s breakthrough in developing water-cooling techniques within three years, a feat that many companies predicted would take a decade. This technology enhances heat dissipation more efficiently than air cooling, resulting in improved performance and energy efficiency for high-power systems.

Addressing global concerns regarding a potential AI bubble, Lin noted that such worries are premature. He pointed out that the sector’s current price-to-earnings ratio, around 30, is significantly lower than the 100 level seen during the late-1990s dot-com era. Meanwhile, Sun Ming-te, director of the Taiwan Institute of Economic Research’s Macroeconomic Forecasting Center, mentioned that the growing unease stems from a lack of major breakthroughs despite extensive cross-investment among leading tech companies.

In contrast, Huang, who arrived in Taiwan on Friday to engage with TSMC executives, expressed optimism about the future of AI development. He noted that the demand for AI remains “very, very strong,” indicating a promising outlook for the sector.