Singapore has emerged as a key contributor to Nvidia Corp.’s recent financial success, accounting for 15% of the US chip giant’s revenue in the third quarter. According to a filing with the US Securities and Exchange Commission, Singapore contributed $2.7 billion to Nvidia’s $18 billion revenue for the quarter ending October, marking a remarkable increase of 404.1% from the same quarter the previous year. This growth outpaced Nvidia’s overall revenue growth of 205.5% from a year ago.
Singapore’s significance in Nvidia’s revenue stream is attributed to its robust digital infrastructure, featuring 100 data centers, 1,195 cloud service providers, and 22 network fabrics. The city-state’s strategic location, strong fiber broadband connectivity, cloud services availability, and pro-business policies have positioned it as a global data center hub. In the third quarter, 80% of Nvidia’s sales were generated from the data center segment, with cloud service providers driving approximately half of the data center revenue.
Singapore’s advantages include hosting major players like Amazon Web Services, Microsoft Azure, IBM Softlayer, and Google Cloud. Additionally, the country boasts a robust network supported by 24 submarine cables, making it a landing site for undersea cables connecting to various regions globally. Singapore’s high median fixed broadband speed, as indicated by the Speedtest Global Index by Ookla, further solidifies its status as a leading digital hub.
On a per capita basis, Singapore’s spending on Nvidia chips in the quarter stood at $600, compared to the US at $60 and China at approximately $3. This highlights Singapore’s outsized contribution to Nvidia’s revenue when considering its size. The city-state’s prominence in specialized cloud service providers (CSPs) establishing data centers in the region adds to its significance in the semiconductor industry.
Analysts acknowledge Singapore’s growing role, emphasizing that customer billing location does not necessarily reflect the point of consumption. The chips may be destined for data centers in Singapore, given the country’s extensive facilities and the global demand for Nvidia’s products.
