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Taiwan is becoming a key global AI hardware hub, supplying servers, power systems, cooling and more for AI data centers. Driven by huge US tech spending, firms like Delta, Wistron and Asia Vital Components are seeing strong demand and long-term growth. Experts say this boom depends on continued real-world AI adoption.
Transcript
00:00Taiwan's top tech expo, Computex, is wrapping up on Friday, and AI infrastructure was put
00:06center stage as a critical layer in the AI ecosystem, notably highlighted by NVIDIA CEO
00:12Jensen Huang in his five-layer cake metaphor.
00:15Taiwan's tech supply chain has been riding the global AI boom, with revenues hitting
00:20record highs and the country's stock market surpassing India's to become the world's
00:25fifth largest. This comes as major U.S. cloud service providers, Google, Meta, Microsoft
00:31and Amazon commit to spending over 700 billion U.S. dollars, mostly for AI data centers and hardware build-outs.
01:13Many Taiwanese companies are at the center of the air infrastructure boom, designing and making the power computing, networking, cooling
01:22and other systems
01:23that form the industry's backbone. Delta Electronics, which consistently ranks as Taiwan's second largest
01:29company by market cap after TSMC, and one of the biggest beneficiaries of AI data center pros, is a major
01:36supplier of power solutions.
01:38It says it continues to focus on energy efficiency and stability amid AI data center expansion and growing constraints on
01:46grid capacity.
01:47The energy efficiency is the tax foundation used by AI
02:17AI servers, the powerful computers that run on the most advanced chips. Taiwan dominates about 90% of the global
02:24AI server market.
02:25And major supplier Wistron said the AI boom helped double its annual revenue to more than 70 billion U.S.
02:32dollars,
02:33driving its global expansion and efforts to speed up supply across borders and amid growing complexity.
02:39Our main customers, they are pretty much in the States. Sending the engineers, work with them together to speed up
02:46the cooperation becomes very, very important.
02:48This whole integration is really trying to optimize the manufacturing efficiency and improve the quality.
02:56Servers handling intensive tasks like training and running AI models put out a lot of heat.
03:02That is where Taiwan's leading thermal solutions providers like Asia Vital Components come in.
03:08They keep everything cool and help data centers run efficiently. A spokesperson from the company says,
03:14demand continues to outpace supply.
03:37While the market opportunity is massive, experts say that sustainable growth will depend on the adoption and prevalence of AI.
03:45Because if you can't grow, you can't grow, you won't be able to grow.
03:50You won't be able to grow. You won't be able to grow.
03:51The infrastructure is a little bit like a roadway.
03:53For example, if you think a lot of people need to use a roadway,
03:56so we can go to the roadway to build the infrastructure.
03:58But if you have to grow, you will have to be able to grow.
04:01Regardless of which models win the global AI race or what innovations emerge,
04:06every data center depends on physical components.
04:09As the old saying goes, in a gold rush, sales shuffles, Taiwan's tech hardware suppliers are happy to oblige.
04:17Yunduan and IT in Taipei for Taiwan Plus
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