Source: Bloomberg
Nvidia's supplier concentration in Asian markets has jumped from 65% to 90%. Taiwan's chip foundries and Southeast Asian assembly operations now control the physical substrate of the AI infrastructure buildout. This dependency creates a geopolitical choke point: competitors lack equivalent supply chain density, while Nvidia gains negotiating leverage with Asian manufacturers who have few alternative customers at this scale. As physical AI applications expand—robotics, edge devices, custom hardware—this Asian concentration will deepen, tying American AI dominance to supply chains that operate outside direct U.S. control.