Meta is turbocharging its bet on artificial intelligence, with CEO Mark Zuckerberg revealing plans to invest hundreds of billions of dollars in building large-scale AI infrastructure. However, not everyone sees the endless potential of the area, with some market watchers questioning whether the sector is overheating.
In a July 14, 2025, post on his social media platform, Zuckerberg announced that Meta will invest vast resources in building AI data centers, with its first flagship facility, dubbed Prometheus, slated to go online in 2026. Several other high-capacity AI computing hubs are also under construction.
Although suppliers have refrained from discussing specific customer shipments or facility expansions, industry experts indicate that the rising demand for AI infrastructure will provide renewed support to the technology supply chain through the latter half of 2025. With ongoing uncertainties surrounding global tariff policies and the consumer electronics market, the demand generated by AI projects is becoming a key stabilizing factor for many participants within the ecosystem.
Meta's "Prometheus" and beyond
According to Zuckerberg, Meta is constructing several gigawatt-class AI data centers. In addition to Prometheus, the company is developing a high-capacity computing cluster known as Hyperion, which could scale to 5GW in the coming years. Meta is also working on multiple Titan-class clusters, with one sprawling across an area comparable to a significant portion of Manhattan.
Beyond Meta, cloud giants including Amazon Web Services and Microsoft are also stepping up capital expenditures for AI infrastructure in 2025. Industry analysts describe it as an "AI arms race without smoke," underscoring the collective confidence that Big Tech has in the sector's long-term trajectory.
Credit: Mark Zuckerberg
Taiwanese supply chain positioned to benefit
Riding the crest of this AI wave, Taiwanese contract manufacturers and component suppliers are poised for significant upside. Key beneficiaries include Foxconn, Quanta Computer, Delta Electronics, BizLink Holding, JPC Connectivity, Auras Technology, and Asia Vital Components, all of which are expected to see robust shipments of AI servers and related components into early 2026.
Despite currency headwinds in the first half of 2025, Foxconn has delivered resilient growth on the back of strong AI server shipments. According to industry sources, the company's shipments of GPU modules and accelerator boards have surged more than 60% year-over-year, while its cloud server revenue has soared by over 150% compared to the same period in 2024.
Foxconn's billion-dollar AI push
Foxconn chairman Young Liu indicated that shipments of AI servers began experiencing rapid growth in the second quarter of 2025. He anticipated that this trend would persist throughout the latter half of 2025, with annual AI server revenue expected to exceed NT$1 trillion (US$30.6 billion). This figure would represent over half of the company's total server revenue, positioning AI as Foxconn's next business segment to reach the trillion-dollar mark.
No signs of cooling
Some market skeptics have expressed concern over a potential AI bubble, warning of supply-demand imbalances. But major US cloud service providers remain bullish, continuing to ramp up AI-related capital expenditures. As sovereign AI initiatives gain traction across regions and use cases expand, the AI boom shows no signs of tapering off.
While pending tariff decisions could add a layer of uncertainty, industry sources believe the impact on AI infrastructure investments will be limited. Most major firms have already adopted diversified global manufacturing strategies, including localized production in the US. As long as there's no sharp pullback in end-market demand, AI infrastructure spending is likely to stay strong for the foreseeable future.
Article edited by Jerry Chen
