Ezconn anticipates another year of strong growth in 2024, driven by robust demand from the US AI data center sector. Orders have increased significantly ahead of anticipated tariffs, pushing January revenue to historic levels despite the Lunar New Year holidays. The company expects its first-quarter performance to exceed projections, with shipments of high-core-count fiber optic products set to maintain momentum through 2025.
Global PMX, a leading manufacturer of automotive power and safety components, is driving growth through healthcare sector expansion and AI implementation. The company continues to strengthen its product portfolio with AI applications to enhance gross profit margins while maintaining stable growth in its traditional automotive market.
The World Bank forecasts stronger global trade growth in 2025 compared to 2024, suggesting that US President Donald Trump's trade protectionism may have less impact on the global economy than initially feared.
Taiwan's export growth maintained its momentum in January 2025, driven primarily by artificial intelligence (AI) and high-performance computing (HPC) demand, according to statistics from Taiwan's Ministry of Finance (MOF).
Despite the ongoing debates over the open-source AI model introduced by Chinese startup DeepSeek, its impact on the cost and accessibility of AI technologies is widely regarded as positive. As the demand for computational power grows, industrial PC (IPC) vendors specializing in edge computing and edge AI are positioned to capitalize on this shift.
Taiwan's government has set an ambitious target to expand its AI computing infrastructure to 480 Petaflops (PF) by 2029, with the potential to reach 1,200 PF through private sector participation. However, the goal of exceeding 1,000 PF faces uncertainty due to recent budget cuts following amendments to the Act Governing the Allocation of Government Revenues and Expenditures.
Recent financial reports reveal decelerating revenue growth for leading cloud service providers, despite maintaining double-digit expansion. Industry perspectives are being shaped by DeepSeek's skepticism toward large hardware investments and an increasing focus on software and AI innovations. Additionally, uncertainty looms over potential new restrictions on AI infrastructure, including chips, that may be implemented by the Trump Administration.
Super Micro Computer, Inc. (Supermicro) has initiated full-scale production of its AI data center systems powered by Nvidia's next-generation Blackwell chips, with shipments expected to commence soon.
The administration of US President Donald Trump has imposed a 10% tariff on China while granting Canada and Mexico a one-month extension before additional tariffs take effect. In contrast to the server supply chain's proactive stance, the consumer electronics sector has maintained a calm approach, with notebook brand vendors and ODMs showing minimal interest in relocating production to the US.
In its latest earnings report, Amazon revealed that its cloud division delivered a robust performance over the past quarter, even amidst macroeconomic uncertainties. Despite this positive development, the company's cautious outlook suggests a potentially volatile geopolitical climate in the near future.
During the earnings call that followed the release of Amazon's financial results, senior executives acknowledged the adverse effects of foreign exchange fluctuations while expressing a cautious outlook for the first quarter. Despite these challenges, the company remains optimistic about the advancements made by DeepSeek and anticipates growing demand for AI inference.
Artificial intelligence (AI) and data center demand are emerging as key performance drivers for Japanese electronic component makers such as Murata Manufacturing, while performance in areas such as automotive and smartphones remains mixed.
Amid rising US restrictions on China's tech sector, leading Chinese cloud computing and AI companies are forging alliances with DeepSeek to challenge global industry leaders and expand their footprint in the AI and cloud ecosystem.
Taiwan's total machine tool exports dropped 14.8% year-over-year to US$2.218 billion in 2024, prompting the government to introduce measures aimed at revitalizing the industry. The Industrial Development Administration (IDA) under the Ministry of Economic Affairs (MOEA) has included machine tools as a demonstration case in its "Pilot Program for Promoting the Introduction of Generative AI in Various Industries," aiming to address four major pain points plaguing Taiwan's machine tool industry.
Amid the furor surrounding the shock emergence of DeepSeek, strong financial results from the AI server supply chain show that demand remains strong. Chassis maker Jinpao Precision Industry (JPP) posted its highest-ever monthly revenue in January 2025 at NT$259 million (approx. US$7.9 million), with the company noting that customers' demand for AI server cabinets continues to exceed supply.
While US President Donald Trump's recent suspension of tariffs on Canada and Mexico aligns with his characteristic unpredictability, it has heightened concerns about future trade policy directions. Server ODM sources indicate that US clients take the tariff threat seriously and have accelerated their manufacturing relocation plans in reaction.
Alphabet's most recent earnings report indicates that its cloud business is beginning to show signs of slowing amidst growing competition in the AI sector. Nevertheless, the company is continuing to increase its capex investments.
ByteDance's TikTok plans to invest THB126.8 billion (US$3.76 billion) in a Thai data hosting service, marking a major expansion in Southeast Asia. Thailand is emerging as a digital hub, attracting tech giants like Google, AWS, and Microsoft despite workforce challenges.
With the advent of the artificial intelligence (AI) era, Taiwan's industrial ecosystem has become increasingly significant. Samsung Electronics (Samsung), which previously prioritized exhibitions in the US and Europe, is reportedly set to participate in Computex for the first time in 13 years, showcasing advanced products such as high bandwidth memory (HBM).
China's AI startup DeepSeek has emerged as a significant player in the AI landscape. While some US government offices have restricted DeepSeek's use, Amazon's AWS and Microsoft have announced support for DeepSeek models. Recent earnings reports from Meta and Microsoft demonstrate continued investment in AI innovation and infrastructure, with capital expenditures showing no signs of deceleration. Google, set to release its earnings shortly, has yet to declare its position.
The emergence of Chinese AI model DeepSeek has sparked concerns over demand for high-end AI servers, raising fears of a potential blow to Taiwan's server ODMs. However, industry insiders say the market's reaction is overblown. AI server shortages persist, while ODMs have long been preparing for the shift toward edge AI, anticipating its eventual boom.
President Trump's administration has escalated trade tensions since taking office, implementing a 25% tariff on goods from Canada and Mexico and a 10% tariff on Chinese imports since February 1, 2025. The administration is considering additional tariffs targeting semiconductors, pharmaceuticals, steel, aluminum, copper, and oil and gas by mid-February. Potential tariff measures against the European Union are also under consideration.
According to Bloomberg Intelligence (BI) economists Chang Shu and David Qu, the latest 10% tariff hike on Chinese goods shifts the next move to Beijing. Signed by President Donald Trump on February 1, 2025, and effective February 4, 2025, the decision leaves little room for last-minute negotiations. Given Trump's hardline stance and Beijing's vow to retaliate, a reversal appears unlikely.
As 2024 came to a close, major companies unveiled their preliminary financial reports. Simultaneously, Nvidia CEO Jensen Huang toured Taiwan, hosting key industry leaders. With the rapid growth of Taiwan's AI server sector and a surge in industry optimism, analysts are bullish on Taiwan's outlook for 2025.
