Taiwan’s Leadership in the Global AI Supply Chain Stays Firm
WHAT
Taiwan consistently dominates AI server supply, producing over 90% of global AI servers and about 80% of all server shipments. Top OEMs are like Foxconn, Quanta/QCT, and Wiwynn.
Taiwan maintains its strong lead in advanced chip manufacturing, holding more than 90% of the global market share. TSMC is projected to achieve 25–30% revenue growth in 2026, according to IDC, primarily due to increasing demand for AI chips and the ramp-up of 2nm technology.
Taiwan is investing $3.2 billion to build an 'AI island' with data centers, quantum hubs, and AI robotics, aiming for top‑5 global compute power by 2040. Foxconn and NVIDIA are constructing an Advanced AI Computing Center in Kaohsiung Software Park, featuring 64 racks with about 4,608 NVIDIA GB200 GPUs and expanding from 20 MW to 100 MW by 2026.
HOW
The expansion of AI data centers, semiconductor manufacturing, and hyperscale compute clusters is significantly driving up electricity demand in Taiwan, particularly during peak periods. Substantial investments in AI and compute centers are closely aligned with comprehensive energy planning and energy efficiency efforts. There has also been notable progress in the development of renewable energy sources and enhancements to grid infrastructure.
Taiwan occupies a pivotal position within the global AI supply chain, encompassing areas such as chip manufacturing, component production, server assembly, and data center operations. A thorough understanding of this supply chain, including potential collaboration gaps and key stakeholders, is essential.
Foreign companies need to learn about the local business environment and assess if collaborating with a local partner is required to facilitate market entry.
CONTACT US
For more information contact Martin Vercouter at martin.vercouter@business-sweden.se