Nvidia's exposure to Asian supply chains for components hits 90% of its production costs — marked increase from 65% could intensify as physical AI adds even more exposure
Nvidia's reliance on Asian supply chains for components has surged to 90% of its production costs, a significant increase from 65% a year ago. This heightened exposure is driven by the growing demand for its physical AI hardware, including the Jetson Thor robotics platform and DRIVE AGX Thor automotive SoC, which compete for constrained resources like TSMC's 3nm wafer capacity and LPDDR5X memory. The company's efforts to build domestic manufacturing capacity are underway but not yet at scale, while existing Asian suppliers face memory shortages impacting older product lines. AI
IMPACT Nvidia's escalating dependence on Asian supply chains for AI hardware components could create significant bottlenecks and cost increases for the industry.
