Competition among major US cloud service providers (CSPs) and AI firms is intensifying, with Google currently perceived as holding a leading position in the overall AI market. Its advancements in AI foundational models, applications, cloud infrastructure, and especially its proprietary Tensor Processing Unit (TPU) chips distinguish it from competitors.

Nvidia's shift from GB200 to GB300 server racks is anticipated to regain growth momentum in September 2025 after a transitional slowdown in July and August, benefiting ODMs in the fourth quarter. Notebook shipments may also hold steady or improve due to Windows 10's end of support driving replacement demand.

Acer's Pan-Asia Operations have made notable progress in expanding their non-PC business sectors through three subsidiaries—Acerpure, Altos, and HSN—each targeting distinct market segments with significant growth potential.

Industrial PC (IPC) companies have begun releasing their revenue figures for August 2025. Despite challenges from the global high-interest-rate environment and geopolitical tensions, overall performance continues to demonstrate resilience through regional and application expansion. Beyond ongoing development of integrated hardware-software solutions, emerging demands in military, edge computing, and semiconductor automation are becoming key strategic focuses for these companies.

The Economic Times, citing unnamed sources, reported that OpenAI is holding preliminary discussions with Indian data center firms, including Sify Technologies, Yotta Data Services, E2E Networks, and CtrlS Datacenters, as it considers bringing its US$500 billion global supercomputing project, Stargate, to India. Parallel talks are also underway with Reliance Industries, which plans to build a massive data center in Jamnagar, Gujarat.

Taiwan's Compal Electronics has announced a strategic collaboration with US-based ZutaCore, a leader in waterless direct chip liquid cooling, to bring transformative cooling technology to high-performance server platforms.

At the SEMICON Taiwan event held in September, key international figures from the semiconductor, robotics, and future vehicle sectors convened, highlighting Taiwan's rising importance as a global technology supply chain center. The gathering underscored international confidence in Taiwan's semiconductor cluster and its electronic manufacturing expertise.

The artificial intelligence (AI) boom continues to drive unprecedented computing power demands. Microsoft has signed a five-year AI cloud computing agreement with Nebius valued at US$17.4 billion, which could reach up to US$19.4 billion if additional service capacity is added.

AMD will launch new products in 2025 and 2026, with OpenAI set to adopt them. OpenAI and Broadcom are targeting mass production in 2026. Interest in diverse AI chip solutions is growing, challenging Nvidia's dominance.

Industrial PC (IPC) manufacturers have been actively expanding into new application markets in recent years, optimistic about the semiconductor industry's growing demand for full-process automation. Taiwan-based IPC maker Aplex Technology is strengthening its software capabilities in the semiconductor sector through investment in Adirtek. By also joining TSS Holdings, Aplex aims to leverage its comprehensive product lineup—including AI IPCs, human-machine interfaces, embedded hosts, edge computing, and AI software operation platforms—combined with Adirtek's system-level competitiveness to jointly penetrate the semiconductor industry supply chain.

Taiwan's semiconductor sector continues to assert its significance globally, with surging demand for advanced processing and packaging technologies driving industrial PC (IPC) manufacturers to deepen their involvement. Industry participants highlight the growing need for customized, stable solutions across wafer fabrication and testing stages.

As the four major cloud service providers (CSPs) aggressively ramp up their presence in the AI computing market, Taiwan's printed circuit board (PCB) industry is experiencing a clear shift in demand. By 2025, orders for traditional servers are expected to give way to AI server demand, driving full-capacity utilization at leading server board makers such as Gold Circuit Electronics (GCE), Allied Circuit (ACCL), and First Hi-tec Enterprise (FHt).

The Taiwan Institute of Economic Research (TIER) released the manufacturing business climate signals for July 2025 on September 2, 2025, revealing that out of 21 manufacturing sectors, 19 flashed "blue lights" indicating recession in its composite index. However, with 70% of Taiwan's exports falling under tariff-free electronic and tech products regulated by the WTO Information Technology Agreement (ITA), the strong shipments in electronics and AI servers have softened concerns over traditional industries facing difficulties.

The explosive growth of artificial intelligence (AI) is fueling a global boom in AI data centers, driving electricity demand to record highs. Taiwanese heavy electrical firms — Fortune Electric, Teco Electric & Machinery, Shihlin Electric, and Allis Electric — are vying for contracts by slashing delivery lead times and positioning themselves as turnkey suppliers of mission-critical power systems.

Global demand for artificial intelligence (AI) is surging, driving parallel growth in AI server deployment. Taiwanese firms, once regarded mainly as component suppliers, have moved up the value chain into connectors, power units, server chassis, and full data center infrastructure. This integrated approach has positioned Taiwan at the center of the global contest for AI computing capacity.

Data centers are often seen as battlegrounds among the three major CPU architectures (x86, Arm, RISC-V) and GPUs from Nvidia, AMD, and specialized ASIC vendors. The Arm architecture has already replaced Intel and AMD in the data processing unit (DPU) market, leveraging its efficient cores used in SmartNICs to dominate the ecosystem.

South Korean telecom giant SK Telecom (SKT) is doubling down on its artificial intelligence (AI) investments in the wake of a major hacking incident. The company has officially begun construction of a large-scale AI data center in Ulsan, South Korea, which will become the country's largest dedicated AI facility outside the capital region.

With the artificial intelligence (AI) wave driving strong demand for AI server hardware products, the energy, power supply, and electromechanical industries have also benefited, due to the high power requirements of AI computing. Beyond technological advancements, providing an adequate supply of talent remains a crucial cornerstone for industry development.

With an increasing number of industries integrating artificial intelligence (AI) into their operations, retail and food services are now using image recognition technology to enhance efficiency, and companies such as Flytech, Posiflex, and Advantech have been developing solutions targeting opportunities in this emerging market.

The rapid advancement of GPU power is driving demand for faster, higher-frequency data links in AI servers and hyperscale data centers. With transfer rates pushing 32 gigatransfers per second, PCB traces are hitting their physical limits, shifting the industry toward high-speed copper cabling and purpose-built connectors.

The Trump administration's tariff policy announced in April 2025 is reshaping global server supply chains, prompting Taiwan's leading EMS firms—Foxconn, Wistron, Quanta, Inventec, and Mitac—to accelerate US expansion. Concentrating investments in Texas and California, these companies aim to localize high-margin components while navigating rising costs and tariff-driven uncertainties.

Hewlett Packard Enterprise (HPE) reported third-quarter fiscal year 2025 revenue of US$9.1 billion, surpassing analyst estimates, driven by strong demand for AI servers and networking products. The company also announced the completion of its acquisition of Juniper Networks.

Japan's Anritsu has teamed up with US chipmaker AMD to launch an automated testing platform for next-generation high-speed transmission, targeting the surging demand from AI data centers. The solution, called System Board Passive Channel (SBPC) Analysis Master, enables consistent validation across diverse devices and environments.

Taiwan-based Far EasTone Telecommunications (FET) is strengthening its international and cloud strategy through its cloud business, Nextlink. FET has announced it has signed a 100% share acquisition agreement with Hong Kong-based cloud service technology firm Renova Cloud, through which FET will gain control of Renova Cloud's subsidiary in Vietnam.

With global smartphone sales leveling off, Qualcomm and MediaTek are taking their long-running rivalry into the fast-growing cloud AI ASIC market. DIGITIMES Research estimates MediaTek controlled 37% of the smartphone application processor market in 2024, ahead of Qualcomm at 27%. Together, the two suppliers accounted for more than 60% of shipments. With handset growth expected to remain stuck in the low single digits, both companies are turning to cloud computing chips as a new source of expansion.