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 suppliers for components has increased to 90% of its production costs, up from 65% a year ago, potentially intensifying as physical AI products expand. The company's Jetson Thor robotics platform, based on the Blackwell GPU architecture and TSMC's 3nm process, competes for wafer capacity with data center GPUs. The demand for LPDDR5X memory sourced from Asian suppliers is straining capacity, impacting older Nvidia products like the Jetson TX2 and Xavier modules. While Nvidia has committed to U.S. server manufacturing, the rapid growth of physical AI product lines is outpacing domestic capacity.