AI Boom Creates New Winners Across Taiwan's Chip Industry
When people talk about Taiwan, they often talk about chips. But that’s only part of the story. Behind the boom is something deeper: a massive supply chain of hundreds of companies building the machines behind the machines that make AI possible.
REPORTER:
When people talk about Taiwan, they often talk about chips.
But that’s only part of the story.
Behind the boom is something deeper: a massive supply chain of hundreds of companies building the machines behind the machines that make AI possible.
REPORTER:
Nvidia, TSMC and Foxconn are among the biggest names driving the AI boom.
On the sidelines of COMPUTEX, US chip designer Nvidia’s CEO Jensen Huang met with Foxconn Chair Young Liu, as Nvidia continues expanding its footprint in Taiwan. The global push for AI is benefiting more and more companies here.
Rolf Bulk（HEAD OF SEMICONDUCTORS & INFRASTRUCTURE, THE FUTURUM GROUP）:
So obviously TSMC is the main beneficiary. Absolutely.
But apart from that
The ecosystem in Taiwan is very rich.
You know, there are dozens of companies that stand to benefit here.
I think companies such as ASE do packaging.
Foxconn that does server assembly.
And those companies stand to benefit.
REPORTER:
But many other firms operate far from the spotlight.
Rolf Bulk（HEAD OF SEMICONDUCTORS & INFRASTRUCTURE, THE FUTURUM GROUP）:
There's companies for instance, such as King Slide that do the reels for Nvidia Rex.
That just really demonstrates that the solutions that companies supply here are very differentiated. And the market positions that they have in their respective segments can be very strong.
REPORTER:
In Taiwan, many highly specialized suppliers dominate niche markets.
REPORTER:
Some of the biggest winners are companies most people have never heard of.
They don’t only design chips.
From cooling systems to power delivery, they form the backbone of AI.
Without them, none of this would be possible.
REPORTER:
Take for example, Taipei-based Delta Electronics.
Alessandro Sossa (PROJECT MANAGER, DELTA ELETRONICS):
Delta is the world's number one world's leader in power and cooling solutions for the IT industry but especially now for AI data centers.
As you know, data centers, they consume a lot of electricity.
So, then Delta has the mission to help all these AI data centers to reduce energy consumption through its high efficiency power, and also liquid cooling solutions and also infrastructure.
REPORTER:
While Delta focuses on powering and cooling AI servers, Liteon specializes in powering and connecting them.
Rolan Lee (GENERAL MANAGER, LITEON):
From early consumer products to now we can design and manufacture everything from general server power supplies to rack-mount power supplies and even cloud-based DC and DC modules.
Our manufacturing base and design and R&D center are both located in Taiwan.
REPORTER:
Taiwan's AI advantage extends far beyond chipmaking.
As companies race to build new data centers, demand is increasing for the equipment that cools, powers and connects them.
For Taiwanese suppliers, the next stage of growth will come not only from the chips themselves, but from everything built around them.
