Wistron Group posted record revenue and earnings per share in 2025, driven by strong demand for AI servers. Still, its gross margin fell as higher unit prices and material costs tied to increased shipments of AI server racks weighed on profitability.

With artificial intelligence (AI) demand surging and key components such as memory in tight supply, Micro-Star International (MSI) chairman Joseph Hsu and president Jeans Huang said the company is actively expanding in the AI server market, achieving growth of 50 to 100% in 2025, and expects to maintain strong growth in 2026. In addition, they expect gaming products to see a price increase of about 15 to 30% in 2026 due to the impact of rising memory costs.

As generative AI advances into the inference and agentic AI stages, global demand for AI computing power is entering a new surge. Nvidia CEO Jensen Huang outlined during his keynote at GTC 2026 that AI development has officially shifted from early model training to an era centered on inference and autonomous agents. He significantly raised Nvidia's forecast for the AI infrastructure market size, estimating that related demand will double and surpass US$1 trillion between 2025 and 2027.

Hon Hai Precision Industry (Foxconn) achieved record-high profits and cash dividends in 2025. Foxconn chairman Young Liu stated that the company's growth momentum will continue in 2026, driven by strong demand for artificial intelligence (AI) servers. The company is also simultaneously launching the next phase of its five-year AI-centered transformation plan.

Nebius, a Dutch data center firm, announced a US$27 billion deal with Meta on March 16, 2026, to supply AI infrastructure capacity to the tech giant. The agreement comes as soaring demand for data center computing pushes Meta to source extra capacity externally.

Amid rising demand for AI computing power and sustained high capital expenditure from global cloud service providers (CSPs), AI servers and data center infrastructure have become the key growth drivers in the ICT supply chain over the past two years. Foxconn, a leader in the AI server industry, forecasts that its AI rack shipments in the first quarter of 2026 will grow by a high double-digit percentage compared to the previous quarter.

Driven by growing demand for AI servers and high-performance computing (HPC) applications, Taiwan's exports to the US surged 83% in the first two months of 2026, marking a strong performance. Following FedEx's launch of its expanded transshipment center at Taoyuan International Airport on March 11, US logistics giant UPS has announced it will open its largest Asia-Pacific logistics hub at the same airport on March 25.

Taiwan's government-run free trade zone has recorded a significant surge in air cargo at Taoyuan International Airport, reflecting the island's expanding role in the global AI supply chain. Large volumes of high-value memory chips are imported into Taiwan for assembly and re-export as AI servers and semiconductor components, a production model that has remained robust for more than two years.

Wistron chairman Simon Lin highlighted that the critical gap for Taiwan's artificial intelligence (AI) development in 2025 and 2026 is talent. Not only are Taiwanese companies urgently seeking skilled workers, but major international companies — including Nvidia, Advanced Micro Devices (AMD), Qualcomm, and Broadcom — are actively expanding their recruitment efforts in Taiwan.

Taiwan's leading automotive power and safety component supplier, Global PMX, has been accelerating its expansion into the fast-growing AI server market while simultaneously advancing into high-value semiconductor and smart medical products. Several new offerings have already entered mass production and shipment, and with additional overseas capacity set to come online, the company is positioning for stronger operational growth ahead.

Taiwan-based power semiconductor packaging and testing firm GEM Services has announced advancements in its copper clip bonding technology to meet growing demand for enhanced cooling solutions in AI servers. As AI servers increase in power density, effective heat dissipation becomes critical, prompting a shift from traditional bottom cooling designs to top and dual-sided cooling products.

Walrus Pump, Taiwan's leading water pump manufacturer, said liquid cooling for AI servers is growing, and it expects a significant increase in technology pump shipments by the second quarter of 2026. The company also reported renewed demand for residential water pumps amid rising raw material costs and low channel inventories.

Amazon Web Services (AWS) and AI chip startup Cerebras Systems said they are working together to bring a high-speed AI inference architecture to Amazon Bedrock, a managed service for building generative AI applications. The companies said the system, expected to launch in AWS data centers in the coming months, will combine AWS's in-house AI chips with Cerebras hardware to accelerate the execution of large language models (LLMs).

Spending by hyperscale cloud service providers (CSPs) is fueling expansion across the AI server supply chain, with demand spreading beyond processors and server assembly into board-level materials and connectivity components.

For decades, Taiwan's government-backed science parks have been the quiet engine behind the world's most powerful semiconductor supply chain. They incubated chip giants, clustered suppliers, and turned a small island into an indispensable node in global tech. Now, that formula has a new destination: the US.

Aurotek Corp. reported record-high consolidated revenue for 2025 and projects double-digit growth for 2026, with its robotics segment contributing more than 10% of last year's sales and expected to expand further this year. The company cited persistent labor shortages worldwide as a key driver sustaining demand for robots.

Global PMX released a positive outlook, identifying semiconductor- and AI-server-related businesses as its main future growth drivers, while signaling a gradual decline in its formerly dominant automotive segment. The company said it has actively optimized its product mix as global industry structures adjust.

The AI industry's obsession with bigger, faster, and more powerful models may be solving the wrong problem — at least when it comes to the billions of devices operating at the edge. At Embedded World 2026 in Nuremberg, Germany, Microchip Technology COO Richard J. Simoncic offered a pointed counterargument to the prevailing hype, and he used one of nature's most unusual creatures to make it.

Printed circuit board (PCB) giant Zhen Ding Technology recently held an earnings call where company chairman Charles Shen noted that customer demand across artificial intelligence (AI) applications, including AI servers, optical communications, and IC substrates, remains strong. At the same time, order visibility and shipment momentum are rising, with AI-related products accounting for nearly 70% of revenue in 2025. Furthermore, the company expects to enter a high-growth phase in 2026.

Semiconductor materials and equipment supplier Wah Lee Industrial reported record-high cumulative revenue for the first two months of 2026, fueled by strong demand for artificial intelligence (AI) servers, high-performance computing (HPC), and advanced semiconductors. Benefiting from robust AI server orders and the gradual rollout of new production capacity for 800G switches, revenue related to its copper-clad laminate (CCL) business has also grown multifold.

FedEx has officially launched its newly expanded transshipment center at Taoyuan International Airport, significantly boosting Taiwan's logistics capacity amid rising demand from the AI and semiconductor sectors. The upgraded facility doubles operational space and integrates an automated sorting system capable of processing over 10,000 parcels daily, supporting rapid growth in the high-tech, semiconductor, and e-commerce industries.

The Office of the US Trade Representative (USTR) on March 11 launched investigations under Section 301 of the Trade Act of 1974 against 16 major trade partners, including China, the European Union, South Korea, Japan, India, and Taiwan. Taiwan's government said the move was anticipated after the recent Supreme Court of the US ruling that struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), prompting Washington to seek alternative legal mechanisms to maintain its tariff framework.

Flytech surpassed NT$5 billion (approx. US$160 million) in 2025 revenue while improving margins, and plans to pivot from a hardware supplier toward a solutions and services provider to pursue sustained profit margin growth.

ByteDance, the Chinese technology company best known as the owner of TikTok, is seeking to secure large amounts of advanced artificial intelligence computing power outside China, underscoring the growing geopolitical tensions surrounding the global AI chip supply chain.