Taipei [Taiwan], November 10 (ANI): Global demand for artificial intelligence (AI) is expected to remain strong despite the controversy surrounding Nvidia Chief Executive Officer Jensen Huang, with Taiwan's semiconductor supply chain sources expecting limited long-term impact on the industry, according to a news report by Focus Taiwan.

A source from Taiwan's integrated circuit packaging and testing industry told Focus Taiwan that while the controversy could affect the supply chain over the next six months, the long-term growth outlook for AI remained unchanged.

The developments come after Nvidia launched an investigation into Huang following reports about his alleged links to a Chinese intelligence operation. Huang acknowledged in an internal memo to employees that he had been unfaithful to his wife, while the company said it believed neither national security nor its corporate secrets had been compromised.

Amid national security concerns, three Republican lawmakers have reportedly sought a closed-door meeting with Huang to question him about whether high-end chips and AI servers were being routed to China through third countries, according to the report.

The packaging and testing industry source said the United States could not afford to slow AI development amid intensifying global technological competition.

'Once the AI train starts moving, it will continue toward its destination, particularly as China is catching up rapidly,' the source said.

However, the source expected the US government to tighten oversight of the AI industry and individual developers in the short term, potentially introducing new regulations for the sector.

An executive at a Taiwanese integrated circuit testing company said local suppliers had worked closely with Nvidia for decades and that such a supply chain could not be built overnight.

'It is necessary for the U.S. to continue its efforts in AI development, or its competitors will take market share away,' the executive told Focus Taiwan, adding that the long-term outlook for the industry was unlikely to change.

Another executive at a Taiwanese semiconductor company said the AI industry was expected to continue expanding as major cloud service providers had pledged to increase investments in AI infrastructure to expand computing capacity.

Growing AI training requirements among other enterprises were also expected to increase demand for data centre capacity.

'Huang was not the only person responsible for creating demand for AI,' the executive said, adding that even if Huang was removed through a management reshuffle at Nvidia, the company's push for AI development was expected to continue.

The executive also advised market participants to monitor possible regulatory changes in the United States, including measures by Congress and individual states concerning AI data centres and power infrastructure, according to the report.

'In the longer term, the U.S. is likely to accelerate its efforts in AI development, and this trend is expected to drive growth in Taiwan's supply chain,' the executive said.

The comments come after Nvidia shares fell 5.75 per cent in out-of-hours trading on Monday following reports of an investigation into Huang's alleged links to a Chinese intelligence operation, as reported earlier by Reuters. (ANI)