Jensen Huang has gone to dinner with TSMC with a request: to step up their game because NVIDIA "needs a lot of wafers"

European technology and digital policy are increasingly shaped by the intricate dependencies within the global semiconductor supply chain. Recent high-level discussions highlight the critical role of wafer production facilities, like TSMC, in powering the current AI revolution, underscoring the strategic importance of advanced chip manufacturing for European digital sovereignty. This focus on manufacturing capacity directly impacts the continent's ability to foster innovation and develop indigenous AI solutions. The insatiable demand for advanced AI chips, driven by companies such as NVIDIA, places immense pressure on key manufacturers like TSMC. Jensen Huang's recent engagements with TSMC, emphasizing NVIDIA's significant need for wafer production, illustrate the delicate balance of power in the tech ecosystem. This demand surge necessitates increased investment and capacity expansion from chip foundries, directly influencing the pace of AI development and deployment across sectors. The implications of these supply chain dynamics are far-reaching for European digital policy. Ensuring access to sufficient advanced chip manufacturing is paramount for reducing reliance on non-European entities and bolstering the continent's position in the global AI landscape. This strategic imperative drives policy discussions around incentivizing domestic production, fostering research and development, and securing resilient digital infrastructure to support future technological advancements.