The head of the world's most valuable company flies to Taiwan almost monthly with a request

Michael Parekh, a former technology partner at investment bank Goldman Sachs, has called chip maker TSMC the “Federal Reserve of the global tech market” and says Jensen Huang, the CEO of the world's most valuable company, is constantly flying to Taiwan to demand increased shipments, Yahoo News reports.

Parekh put Taiwan Semiconductor Manufacturing Company Limited's (TSMC) comparison with the US central bank down to the control the Taiwanese company has over advanced chip manufacturing capacity.

The businessman said in an interview with StockTwits that Nvidia CEO Jensen Huang “flies to Taiwan almost every month” to ask TSMC for additional production capacity.

Huang, who was born in Taiwan and immigrated to the US with his parents as a child, has been one of Nvidia's co-founders and CEO since its inception.

The head of Nvidia stated that investments in AI infrastructure will reach trillions of dollars

The American chipmaker, known for years almost exclusively for its video game graphics cards, has become the world's most valuable company thanks to the AI ​​boom and its huge market share in graphics processing units – the advanced chips that AI systems need for their calculations.

But outsourcing its own production to TSMC has even put Nvidia in trouble due to growing demand.

Even Jensen Huang recently estimated that investment in AI infrastructure could reach $3-4 trillion by the end of the decade. But Parekh says the amount could be even higher if TSMC can expand its offering.

“They are the blocking factor. Jensen flies to Taiwan almost every month, he basically says to his friends at TSMC: 'please, another hundred billion here, build me more factories'. But the TSMC people are not doing that,” stated Michael Parekh in the interview given to the StockWits platform.

TSMC makes almost all of Nvidia's chips

“TSMC is the Federal Reserve of the global technology market. They have to expand their manufacturing plants, which takes three to five years to build and costs billions, tens of billions, even hundreds of billions of dollars. And they are not expanding their production to cover the full potential of more than five trillion (no. $5 trillion),” Parekh added in the interview.

TSMC makes about 90 percent of the chips Nvidia needs, and sales to Apple and Huang's company bring the Taiwanese maker about 50 percent of its total revenue.

“A year ago, AI was about chatbots. Now it's about agents and reasoning systems, and they use over 100 times more chips for inference than we needed for chatbots a year ago,” pointed out Michael Parekh.

His career as a technology investor has spanned the evolution of the internet, mobile technologies, the cloud and all the big tech waves of the last three decades