An investigation launched by Nvidia Corp into its founder and CEO Jensen Huang (黃仁勳) over his affair with an alleged Chinese spy is unlikely to have a major impact on Taiwan's artificial intelligence (AI) supply chain, Taiwan Institute of Economic Research (TIER) president Chang Chien-yi (張建一) said today.
The Taipei-based think tank leader was responding to questions about possible effects on Taiwanese suppliers, after Nvidia's board opened an independent inquiry into reports of foreign intelligence efforts targeting Huang through an alleged intimate relationship with a suspected spy.
Photo courtesy of the Taiwan Institute of Economic Research
"I do not think this will stop AI development," Chang told reporters at a TIER seminar on next year's economic outlook and industry trends. "For the AI supply chain as a whole, I do not expect any major impact."
In a message to Nvidia employees yesterday, Huang admitted that he had been involved in an extramarital affair, but he did not name the person.
He also apologized to his family and colleagues and pledged to cooperate fully with the Nvidia board's investigation.
"I was unfaithful to my wife. My actions hurt her and our children," he said in the message, which was released in a statement issued by Nvidia. "There is no excuse for what I did. I am deeply sorry."
The admission came two days after the Financial Times reported that US intelligence officials believed Huang had been romantically involved with Alice Huang (黃樂), a Chinese woman whom they suspected had been recruited to spy for China's main intelligence agency.
Alice Huang is a former executive of Megaspeed, a Singapore-based company that purchases advanced AI hardware and processors from Nvidia, which is headquartered in California's Silicon Valley.
Nvidia said that a committee of independent directors is to oversee the investigation into its CEO, with assistance from outside counsel, but added that it had no reason to believe US national security or company secrets had been compromised.
Speaking to reporters today, Chang said the scandal could hurt Jensen Huang's reputation, but the question of whether it had led to China obtaining AI servers outside authorized channels or gaining access to US AI technology would have to await the investigation's findings.
For Taiwan's exporters, many orders for the first half of next year have already been placed, and data centers that have secured permits are still being built, Chang said.
He projected that AI investment by major cloud service providers would continue to grow next year, albeit at a slower pace.
Today, the TAIEX opened 645.64 points higher at 40,347.28 after Friday's sell-off and the announcement that the National Stabilization Fund had been authorized to intervene.
By 1:05pm, the benchmark had climbed 2,093.19 points, or 5.27 percent, to 41,794.83.
In morning trading, Taiwan Semiconductor Manufacturing Co (台積電) rose NT$125, or 5.85 percent, to NT$2,260. Hon Hai Precision Industry Co (鴻海精密) gained NT$18, or 8.02 percent, to NT$242.5, while Quanta Computer Inc (廣達電腦) advanced NT$8, or 2.75 percent, to NT$298.5.
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