Taiwan has long proven its value and significance in the world’s hardware supply chain, after 40 years of focusing on developing electronics as diverse as tiny chips and massive server racks. The nation’s most recent rise to prominence in tech is linked to the artificial intelligence (AI) boom, which is easing worries that Taiwan might lose its competitive edge because of its overdependence on IT hardware.
The recognition from the world’s technology heavyweights at the Computex Taipei trade show last week was a clear sign. Intel Corp CEO Pat Gelsinger gave a new definition for IT at the show: “Intel and Taiwan together.” In his keynote address at Computex on Tuesday last week, Gelsinger highlighted Intel’s long-standing partnerships with Taiwanese suppliers since 1985.
He even gave a “special thanks to our friends at Taiwan Semiconductor Manufacturing Co (TSMC),” which he said was “critical” in helping the US company with many of its core technologies required to make its upcoming Lunar Lake series of processors. The remarks almost confirmed that Intel’s new chip with AI capabilities would be made using TSMC’s 3-nanometer process technology.
Less than two years ago, Gelsinger said that Taiwan was in a “precarious” position in the technology industry, given the geopolitical tensions between it and China. Yet, last week, he told Computex attendees that Taiwan “continues to play a central role” together with Intel in bringing new innovations and products with AI functions to the world. He then played a video showing Intel’s key local partners talking about working on innovative AI applications for cloud and edge devices. The clip included appearances by senior executives from Taiwan’s Hon Hai Precision Industry Co, Quanta Computer Inc, Wiwynn Corp, Inventec Corp and foundry service provider United Microelectronics Corp.
Gelsinger made unprecedented visits to booths of local hardware companies that work with Intel, just like Advanced Micro Devices Inc CEO Lisa Su (蘇姿丰) and Nvidia Corp CEO Jensen Huang (黃仁勳), both of whom were born in Tainan. The heads of the big three US chip companies also met executives from their local partners and exchanged views over dinners last week.
Since almost all advanced AI chips are made at TSMC’s fabs and 90 percent of the world’s servers, especially AI servers, are assembled by Taiwanese companies, it is understandable why the heads of chip giants were keen to bolster their partnerships with local companies through in-person meetings during Computex. Nvidia called Taiwan the “unsung hero, but a steadfast pillar of the world.”
Because of the AI boom, Computex has again caught the eye of the tech world. The number of visitors this year soared 70 percent to 85,179 from last year. Computex used to be a PC-centric show and became less popular in recent years, just like the PC industry.
However, Taiwan should not be satisfied with what it has achieved. Winning the world’s recognition should be just the beginning. Companies should boost their development of AI-related software and applications for different vertical sectors, leveraging the nat canion’s hardware strengths.
Taiwan has been slow in building its presence in the world’s software market. It is time to make a leap to ride the AI wave.
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