2025 OCP APAC Summit | AI Supply Chain Reinvent: Building a Better Ecosystem | Digitime

3 days ago

2 min read

Summary

DIGITIMES points out that AI and semiconductor supply chains are entering an era where deglobalization and reglobalization coexist. With its high-density manufacturing capability, complete supply chain and flexible collaboration model, Taiwan plays an irreplaceable hub role in the global AI hardware ecosystem. Over the next ten years, Taiwan is poised for a "golden decade," driving the reshaping and upgrading of the global AI industry and semiconductor value chain.

Content

1. A Turning Point for the Global AI Supply Chain

1.1 Post-Pandemic and Geopolitical Impact

Global supply chain restructuring has accelerated since COVID-19
The US, Europe, Japan and others are actively pushing local manufacturing
Thanks to its foundry and supply chain integration strengths, Taiwan has become a key partner for tech giants worldwide

1.2 The AI and Semiconductor Market Is Exploding

The global semiconductor market has surpassed US$1 trillion
US companies account for 71% of market value, Taiwan for 14.6%
Taiwan alone equals the combined total of Japan + South Korea + China + Europe

2. Taiwan's Supply Chain Advantages

2.1 Manufacturing Density and Infrastructure

Taiwan has a complete foundry, packaging and test, memory, materials and equipment supply chain
High population density enables efficient communication and collaboration within the industry
120+ server manufacturing sites worldwide, spread across the US, Southeast Asia and Europe

2.2 A Flexible Collaboration Model

An inside-out strategy: proactively going overseas and partnering with multinational companies
Deep collaboration with giants such as Amazon, Google, Microsoft and Tesla
A shift in brand value: moving from OEM/ODM toward hardware-software integration and an ecosystem platform role

3. A Landscape Where Deglobalization and Reglobalization Coexist

3.1 Supply Chain Migration and Diversification

Vietnam, Malaysia and India are becoming emerging manufacturing and market hubs
Multinational investment policies and geostrategy are pushing companies toward multi-site redundancy strategies

3.2 New Battlegrounds Beyond the US and China

Europe and South Asian countries are actively attracting investment
Japan, South Korea and Taiwan are the only three countries with truly complete domestic semiconductor supply chains

3.3 Global Strategic Transformation

The US market is primarily demand-side driven
Taiwan is centered on the supply side
A model of cooperation and shared prosperity is needed to redefine roles in the global AI supply chain

4. Industry Challenges and Strategic Recommendations

4.1 Challenges

Geopolitical risk: tariffs, exchange rates, export controls
High capital intensity: major companies reinvest nearly 100% of net income into capital expenditure
Rapid technology iteration: surging demand for on-device AI, edge computing and hardware-software integration

4.2 Strategies

Strengthen supply chain resilience: multi-site footprint and flexible production
Deepen hardware-software integration: cross-domain collaboration to create new value
Expand the global partnership network: combine the strengths of the US, Japanese, European and South Asian markets
Export the Taiwan experience: use the Taiwan model to help other countries build local semiconductor infrastructure

Conclusion

DIGITIMES emphasizes that Taiwan's role in the global AI supply chain is humble yet indispensable:

With its complete supply chain and flexible collaboration capabilities, Taiwan is a key bridge for tech giants entering global markets
The next ten years will be a golden decade for Taiwan's AI and semiconductor industries
Deglobalization and reglobalization coexisting — this new landscape will push Taiwan to play the role of core driver in the global value chain