NVIDIA's reliance on Asian suppliers for components has risen to 90% of total production costs, up from 65%, intensifying supply-chain concentration risk as physical AI workloads drive demand for custom silicon and packaging.
The shift reflects NVIDIA's dependence on Taiwan-based foundries (TSMC), South Korean memory (SK Hynix, Samsung), and assembly partners in Malaysia and Vietnam. For enterprise procurement teams, this signals widening geopolitical exposure in GPU sourcing and longer lead times amid trade friction.