Strong demand for AI server cooling is extending visibility for the industry, with Asia Vital Components (AVC) and Auras Technology both forecasting sustained growth through 2029. Nvidia is driving a shift from air cooling to liquid cooling in AI servers, boosting both revenue and profits for cooling module makers.

COMPUTEX drew major AI supply chain players to Taiwan, and industry sources said SK Group chairman Chey Tae-won was set for a private meeting with Foxconn chairman Young Liu, alongside his meetings with TSMC chairman C.C. Wei and Nvidia CEO Jensen Huang. The reported talks could signal broader cooperation on AI infrastructure.

As Computex 2026 opened in Taipei on June 2, Taiwanese President Ching-te Lai said major international tech companies are increasing investment in Taiwan, underscoring confidence in the country's industrial efficiency and democratic system. He said protecting peace and stability across the Taiwan Strait is the government's most responsible commitment to the global supply chain that relies on Taiwan's AI industry ecosystem.

Largan Precision's debut at Computex 2026 signals a broader push into optical communications that could matter for AI data center supply chains worldwide. The Taiwan company is seeking new growth beyond lenses, and its co-packaged optics efforts reflect rising industry interest in faster, denser, and more efficient connectivity.

Delta Electronics said at COMPUTEX 2026 that it has launched a prefabricated AI modular data center designed to speed deployment of AI infrastructure by cutting IT build time by about 60%. The move underscores how vendors are racing to support global demand for denser, faster, and more power-efficient AI facilities.

Five of India's most industrialized states sent high-level officials to pitch their regions as the next anchors for global electronics and AI supply chains this week at the 2026 Taiwan–India Investment Partnership Forum.

At COMPUTEX 2026 in Taipei, HOMEE AI, Osense Technology, and Senao International unveiled new AI products aimed at shifting deployment from cloud training to real-world inference and edge applications. HOMEE AI presented a spatial AI ecosystem that combines 3D scanning, digital twins, and spatial computing to link home viewing, interior design, purchasing, and space management, while Osense and Senao showcased video generation, customer service, and enterprise edge computing offerings designed for rapid commercial rollout.

As artificial intelligence (AI) infrastructure grows larger and more complex, the challenge is no longer simply building data centers. It is building them fast enough.

Acer and Taipei Computer Association (TCA) Chairman Jason Chen said Nvidia's AI PCs, designed specifically for agentic AI functions, point to a new usage model in the AI era and could create fresh demand in the PC market. He said the PC industry, which had been stuck in stagnation or decline for years following a pandemic-era boom due to a shift toward working and studying from home, now has a chance to rebound as AI shifts from training to inference.

Genius Electronic Optical Co. (GSEO) said on May 29 that its co-packaged optics (CPO) business is moving toward rapid growth in 2027 and 2028, with shipments that could eventually rival smartphone lenses as a second major revenue source.

Pegatron announced a new generation of AI infrastructure products and an AI Factory validation framework at Computex 2026, showcasing the Nvidia Vera Rubin platform, HGX Rubin NVL8, and RTX PRO servers integrated with the Nvidia DSX AI Factory reference design to support design, verification, and deployment from digital twin simulation to mass production. The firm said the portfolio aims to advance AI Factory capabilities for manufacturing customers by combining compute, cooling, and validation workflows.

The AI arms race is shaping up to be much more than a competition for computing power, with factors such as power supply, grid resilience, and carbon credits all playing a part in the ever-escalating battle.

Intel CEO Lip-Bu Tan used his Computex 2026 keynote in Taipei to frame Intel's AI-era reset around execution, infrastructure, and deeper ties with Taiwan's PC and semiconductor supply chain.

Qisda Corporation is accelerating its AI strategy across its core businesses, with chairman Peter Chen saying the technology is still in its early stages but is already reshaping daily life and will have a greater impact over the next decade.

Power Integrations (PI) has announced two ultra-thin, compact auxiliary power supply (PSU) reference designs built for 800VDC AI data centers. PI principal training engineer Jason Yan said the ultra-compact solution, designed for Nvidia Kyber liquid-cooled blade-rack systems, uses a highly integrated GaN design that saves 30% of PCB space and reduces component count by 30% compared with conventional silicon carbide (SiC) solutions.

Foxconn Technology Group used COMPUTEX 2026 to present a broader AI infrastructure push, signaling a move beyond AI server supply and into token factory services. The company highlighted its "3+3+3" transformation strategy spanning manufacturing, platform applications, robotics, healthcare, and space-related computing.

Alphabet said it will raise US$80 billion in equity to fund a rapid expansion of artificial intelligence infrastructure as demand for its services accelerates, signaling a more capital-intensive phase of growth that could reshape global cloud and chip supply chains. Berkshire Hathaway separately agreed to invest US$10 billion, underscoring investor conviction in the company's long-term AI build-out.

Foxconn and Nvidia announced at Nvidia GTC Taipei that they would expand agentic AI deployments across Taiwan's major medical centers this year to support the government-backed Healthy Taiwan initiative, aiming to move hospital AI from isolated pilots to coordinated multi-agent systems. The rollout pairs Foxconn's Nurabot nursing collaboration robot and surgical scrub bots with CoDoctor software agents to handle clinical reasoning, record-keeping, logistics, and real-time procedure support.

Precision reducer manufacturer Turvo International entered COMPUTEX 2026 to showcase its shift from single-part manufacturing to end-to-end precision engineering services targeted at physical AI and robotics. The company exhibited a micro harmonic reducer and an integrated joint module designed for robot shoulders and wrists, and displayed a concept humanoid robot demonstrating full-system integration of its reducers.

Global Connect Show Shenzhen 2026 (GCS SZ 2026) was successfully held on June 1 in Shenzhen, China's innovation hub. Under the theme "Where Global Innovation Meets Market Opportunity," the event brought together more than 80 mainstream technology editors, key opinion leaders (KOLs), channel partners, and business associations from North America, the UK, Europe, and Southeast Asia, alongside over 100 Chinese enterprises expanding into international markets.

Hewlett Packard Enterprise (HPE) reported a record second fiscal quarter of 2026, with management saying accelerating demand for AI infrastructure, networking, and enterprise modernization has pushed the company two years ahead of its original fiscal 2028 financial targets.

Foxconn said its Genesis smart manufacturing project has delivered measurable gains in AI-driven factory operations, with production-line scheduling efficiency up 50%, misjudgment rates down 50%, and root-cause analysis accuracy rising to 90%. The company also said the time needed to build new plants and deploy production lines has been cut by more than 60%.

GSEO expects a traditional peak season in the second half as smartphone camera customers prepare to ramp new-model orders from mid- to late June, while AI glasses have become its second-largest product line behind mobile phones.

Asus chairman Jonney Shih said the company is extending its AI strategy beyond servers into agentic AI, edge AI, and physical AI, while treating humanoid robots as a major future market. He said the company's AI server shipments are surging and that physical AI has already been made a long-term priority.