This article was first published in New Electronics magazine here.
In today’s fast-moving global tech landscape, Taiwan has emerged as one of the most important hubs for AI infrastructure and innovation. And it should be a serious focus for any company with cutting-edge technology targeting the AI or quantum computing sectors.
While the world’s media attention often centres on digital models and software applications, the physical hardware, semiconductors, servers and compute-optimised infrastructure that enable AI’s rapid growth overwhelmingly flows through Taiwan. And all this is driving its robust economic performance and helping to cement AI as a key aspect of its future.
When people think about Taiwan's role in AI, most focus on TSMC's semiconductor dominance. But Taiwan's supply chain extends beyond chips and includes thermal management, power systems, server integration and more.
You may not have heard of Foxconn, Wiwynn, Wistron, Quanta, Inventec, Gigabyte, Pegatron and Compal, but they’ve been making the world’s consumer electronics for decades. If you own a smartphone, smart watch, tablet computer, TV or any other electronic device, it’s highly likely to have been manufactured by one of these Taiwanese companies.
While historically their revenues and growth have come from making such consumer devices, however, in the past couple of years, this has shifted decisively towards AI servers.
For companies such as Foxconn, most famous for manufacturing the iPhone, AI servers now account for more revenue and growth than smartphones. And Taiwan controls 90% of global AI server manufacturing capacity, making working with Taiwanese companies a necessity for any business looking to develop AI infrastructure.
Taiwan’s experience and natural advantages with semiconductors and electronics have easily transferred to AI hardware.
It’s geographically small and, with suppliers packed together in close proximity, lead times to develop new products are short. Server manufacturers such as Quanta and Wistron are based near power companies including Delta Electronics and cooling companies such as Asia Vital Components or XING.
It also helps that two of the world’s AI leaders – Nvidia and AMD – have Taiwanese-American CEOs in Jensen Huang and Lisa Su (pictured below). And the ecosystem around these two companies’ products is heavily Taiwanese, helping to build up the sector in Taiwan and the overall industry globally.
Lisa Su, CEO of AMD, at the 2024 Southern Semiconductor Forum | Source: Tainan City Government
Both companies are also investing heavily in Taiwan, with Nvidia due to open its regional HQ in Taipei. And Nvidia's next-generation AI server – set to launch this year – will be made by Foxconn, Quanta and Wistron.
This concentration of talent, innovation and knowledge has now made Taiwan a one-stop shop for any company looking to move its AI idea or prototype into mass production.
In addition, of course, at the heart of Taiwan’s global importance is its world-leading semiconductor industry, revolving around TSMC.
TSMC’s foundries produce cutting-edge chips used by Nvidia, Apple, AMD and other tech giants for AI applications. And its dominance in advanced process nodes and packaging technologies makes Taiwan indispensable to the AI computing supply chain.
Looking at Taiwan’s electronic manufacturing services (EMS) companies, traditionally they made whatever their customers wanted, to the spec they were given. But we’re now seeing a shift in this mindset.
The EMS companies I regularly speak to in Taiwan are increasingly interested in innovating and bringing new ideas to customers to win business. And this makes them increasingly important players for pioneering tech companies to impress.
From my discussions with these firms, I’ve learnt they’re currently interested in technologies including advanced packaging, co-packaged optics, advanced power supply solutions such as GaN FET and quantum-AI hybrid solutions.
Taiwan is also extending its hardware and infrastructure expertise into quantum technologies, with the aim of integrating quantum computing into its national AI strategy.
Quantum computing is viewed as a natural complement to AI. For example, hybrid quantum-AI workloads could accelerate complex optimisation tasks, enable advanced molecular simulations and dramatically improve machine learning training efficiency in the future.
So, Taiwan has classified quantum technology as a strategic pillar within its broader ‘Ten Major AI Infrastructure Projects’ programme, alongside silicon photonics and robotics, signalling a long-term commitment to building hybrid compute platforms that blend classical AI and quantum processing. This aims to seed both fundamental research and future commercial systems that capitalise on quantum-enhanced AI.
At the National Centre for High-Performance Computing (NCHC), meanwhile, a next-generation supercomputing platform powered by Nvidia tech is designed to support not only traditional AI workloads but quantum research and hybrid compute workflows, including CUDA-Q and GPU-accelerated quantum simulation tools.
While progress in pure quantum systems is still in its early stages, Taiwan’s strategy is pragmatically focused on integration and hybrid workflows that can drive near-term value for research communities and industry partners.
Taiwan’s AI and semiconductor focus isn’t just a technological success, either; it’s a major driver of economic performance.
Its economy has shown remarkable strength, with 2025 GDP growth forecast at 7.4% - the fastest in 15 years.
In addition, exports and industrial output related to AI and semiconductors have been core to this surge, contributing to record sales and heightened global market participation.
A particularly striking development last year was Taiwan’s GDP per capita surpassing South Korea and Japan for the first time in decades, at approximately USD 38,000. This milestone is attributed largely to booming outputs from the AI-linked semiconductor sector and signals the market’s transition to a high-income, high-tech economy.
Opportunities for international tech companies
Given all this, there are several important areas of focus for international tech firms looking to engage with Taiwan’s AI ecosystem:
So, Taiwan’s dominance in semiconductor manufacturing, its unrivalled position in AI server builds and its emerging efforts in quantum-AI hybridisation place it at the core of global AI infrastructure. Coupled with strong economic momentum and a growing number of global partnerships, it isn’t just supporting the AI revolution, it’s shaping it.
International tech firms that engage with Taiwanese companies stand to benefit greatly from technological leadership, strategic partnerships and access to one of the world’s most dynamic AI ecosystems as this transformation continues to unfold at pace.
To discuss the opportunities for your business in Taiwan, you can contact Stewart at stewart.randall@intralinkgroup.com