Taiwan AI Server Market: Rapid Growth to 2 Trillion NTD (approx. 10 Trillion JPY) in Just 10 Years! A Thorough Analysis of Taiwan's Supply Chain at the Forefront of Global Digital Infrastructure
Wise Research, part of Taiwan-based Wise Consulting Group, has released a special feature analyzing the rapid growth of Taiwan's AI server market. Driven by the global generative AI boom, the market is projected to reach 2 trillion NTD (approx. 10 trillion JPY) by 2026, supported by strong ties with leading US IT giants and advanced chip manufacturers, and the strategic shift of Taiwanese ODM companies.
📋 Article Processing Timeline
- 📰 Published: May 8, 2026 at 19:33
- 🔍 Collected: May 8, 2026 at 11:02
- 🤖 AI Analyzed: May 9, 2026 at 01:39 (14h 37m after Collected)
Wise Research, part of Wise Consulting Group (headquarters: Taipei, Republic of China; Representative Director: Yasushi Yoshimoto), a Japanese-affiliated consulting firm based in Taiwan, released its special feature on "Taiwan Industry Strategy" starting May 8, 2026.
Taiwan's AI Server Industry: Soaring to a 2 Trillion NTD Market within 10 Years, a 100-fold Increase in Market Size
https://www.ys-consulting.com.tw/research/128315.html
Against the backdrop of the global generative AI boom, Taiwan's server industry, which physically supports the world's digital infrastructure, is experiencing unprecedented growth. Our "Wise Machinery Industry Journal" has been continuously monitoring trends in Taiwan's AI server market and supply chain since 2024, when the wave of generative AI began to accelerate. In this series, based on accumulated latest industry data, we will thoroughly dissect the overwhelming strengths of Taiwan's server industry, the forefront of its supply chain, and its ripple effects on Japan's machinery and manufacturing industries over three installments.
From less than 10 Billion NTD to a 2 Trillion NTD Market
In 2010, the market size was a mere 6.4 billion NTD (approx. 18 billion JPY), and even in 2015, it was 17.2 billion NTD (approx. 65 billion JPY), certainly not a giant industry supporting the nation's economy. However, a major turning point arrived in 2020. In addition to the global expansion of demand for data center servers, "reshoring production to Taiwan" rapidly progressed due to geopolitical risks such as US-China trade friction, causing the market to surge to 140.5 billion NTD (approx. 500 billion JPY). Currently, the explosive spread of generative AI is driving increased demand for AI servers, and the completeness of Taiwan's domestic supply chain is a powerful driving force, leading the market size in 2025 to further leap from the previous year, reaching 1.7108 trillion NTD (approx. 8.5 trillion JPY).
A market that was less than 20 billion NTD just 10 years ago has rapidly expanded to a 1.7 trillion NTD scale, and is further expected to surpass the 2 trillion NTD (approx. 10 trillion JPY) mark in 2026, firmly establishing its position as the most crucial core industry driving Taiwan's economy.
▲Taiwan Ministry of Economic Affairs statistics, created by Wise Research
Strong Ties with Advanced Chip Manufacturers
Powerfully driving this leap to a 2 trillion NTD market are the world's leading US IT giants such as Google, AWS (Amazon Web Services), Microsoft, and Meta. The majority of servers they deploy in their massive data centers are designed, manufactured, and supplied by Taiwanese companies. It is no exaggeration to say that Taiwanese manufacturing technology is always behind global data communications and cloud services.
The biggest reason why demanding US big tech companies all choose Taiwanese companies is the "strong and close collaborative system" that Taiwanese companies have built with cutting-edge chip manufacturers like Nvidia and AMD.
Taiwanese server manufacturers are deeply involved as part of the ecosystem from the development stage of new AI chips. This allows them to establish a "system for designing, mass-producing, and shipping servers equipped with the latest GPUs and CPUs the fastest in the world." This overwhelming speed, combined with advanced technical integration capabilities at the manufacturing site, is the absolute competitive advantage of Taiwan's server industry, making it difficult for other countries to follow suit.
Taiwanese ODMs' "AI Shift" and Departure from Consumer Devices
Due to structural changes in the market, major Taiwanese ODM (Original Design Manufacturer) companies are significantly shifting resources from traditional low-margin consumer electronics to the AI server business.
Wistron (緯創資通) sold its iPhone assembly plant in India to the Tata Group for 125 million USD (approx. 3.89 billion NTD) in October 2023, clearly signaling its concentration on the AI server business, including the supply of Nvidia HGX boards.
Foxconn (鴻海精密工業) also saw its cloud network product sales ratio reach 42% in the third quarter of 2025, surpassing consumer smart products like iPhones for the first time, strengthening its identity as an AI infrastructure company. Quanta Computer (広達電脳) also predicts that AI servers will account for over 50% of its server sales in 2024, indicating a major overhaul of the industry's business model.
***Author Profile***
Wise Research Manager
Wan-ting Duan
Known for her bright and dependable personality, she is highly regarded for her positive leadership both inside and outside the company. She possesses extensive experience in industry and market research, consumer surveys, and also serves as an instructor for employee training. Holding ISO27001 auditor qualifications, she can also support clients with information security challenges.
【Inquiries regarding market research and surveys in Taiwan
Keywords:
Taiwan's AI Server Industry: Soaring to a 2 Trillion NTD Market within 10 Years, a 100-fold Increase in Market Size
https://www.ys-consulting.com.tw/research/128315.html
Against the backdrop of the global generative AI boom, Taiwan's server industry, which physically supports the world's digital infrastructure, is experiencing unprecedented growth. Our "Wise Machinery Industry Journal" has been continuously monitoring trends in Taiwan's AI server market and supply chain since 2024, when the wave of generative AI began to accelerate. In this series, based on accumulated latest industry data, we will thoroughly dissect the overwhelming strengths of Taiwan's server industry, the forefront of its supply chain, and its ripple effects on Japan's machinery and manufacturing industries over three installments.
From less than 10 Billion NTD to a 2 Trillion NTD Market
In 2010, the market size was a mere 6.4 billion NTD (approx. 18 billion JPY), and even in 2015, it was 17.2 billion NTD (approx. 65 billion JPY), certainly not a giant industry supporting the nation's economy. However, a major turning point arrived in 2020. In addition to the global expansion of demand for data center servers, "reshoring production to Taiwan" rapidly progressed due to geopolitical risks such as US-China trade friction, causing the market to surge to 140.5 billion NTD (approx. 500 billion JPY). Currently, the explosive spread of generative AI is driving increased demand for AI servers, and the completeness of Taiwan's domestic supply chain is a powerful driving force, leading the market size in 2025 to further leap from the previous year, reaching 1.7108 trillion NTD (approx. 8.5 trillion JPY).
A market that was less than 20 billion NTD just 10 years ago has rapidly expanded to a 1.7 trillion NTD scale, and is further expected to surpass the 2 trillion NTD (approx. 10 trillion JPY) mark in 2026, firmly establishing its position as the most crucial core industry driving Taiwan's economy.
▲Taiwan Ministry of Economic Affairs statistics, created by Wise Research
Strong Ties with Advanced Chip Manufacturers
Powerfully driving this leap to a 2 trillion NTD market are the world's leading US IT giants such as Google, AWS (Amazon Web Services), Microsoft, and Meta. The majority of servers they deploy in their massive data centers are designed, manufactured, and supplied by Taiwanese companies. It is no exaggeration to say that Taiwanese manufacturing technology is always behind global data communications and cloud services.
The biggest reason why demanding US big tech companies all choose Taiwanese companies is the "strong and close collaborative system" that Taiwanese companies have built with cutting-edge chip manufacturers like Nvidia and AMD.
Taiwanese server manufacturers are deeply involved as part of the ecosystem from the development stage of new AI chips. This allows them to establish a "system for designing, mass-producing, and shipping servers equipped with the latest GPUs and CPUs the fastest in the world." This overwhelming speed, combined with advanced technical integration capabilities at the manufacturing site, is the absolute competitive advantage of Taiwan's server industry, making it difficult for other countries to follow suit.
Taiwanese ODMs' "AI Shift" and Departure from Consumer Devices
Due to structural changes in the market, major Taiwanese ODM (Original Design Manufacturer) companies are significantly shifting resources from traditional low-margin consumer electronics to the AI server business.
Wistron (緯創資通) sold its iPhone assembly plant in India to the Tata Group for 125 million USD (approx. 3.89 billion NTD) in October 2023, clearly signaling its concentration on the AI server business, including the supply of Nvidia HGX boards.
Foxconn (鴻海精密工業) also saw its cloud network product sales ratio reach 42% in the third quarter of 2025, surpassing consumer smart products like iPhones for the first time, strengthening its identity as an AI infrastructure company. Quanta Computer (広達電脳) also predicts that AI servers will account for over 50% of its server sales in 2024, indicating a major overhaul of the industry's business model.
***Author Profile***
Wise Research Manager
Wan-ting Duan
Known for her bright and dependable personality, she is highly regarded for her positive leadership both inside and outside the company. She possesses extensive experience in industry and market research, consumer surveys, and also serves as an instructor for employee training. Holding ISO27001 auditor qualifications, she can also support clients with information security challenges.
【Inquiries regarding market research and surveys in Taiwan
Keywords: