In a bold declaration on the eve of Computex 2025, Nvidia CEO Jensen Huang announced that the company will partner with Taiwanese tech giants and the island’s government to build Taiwan’s first AI supercomputer, marking a milestone moment in the global race for artificial intelligence dominance.
“Having a world-class AI infrastructure in Taiwan is really important,” Huang said in his keynote address to a packed auditorium in Taipei. “This project will empower Taiwan to lead not only in semiconductor fabrication, but in AI research, deployment, and applications across sectors.”
The announcement comes at a critical time. Taiwan’s role in the global semiconductor supply chain is under intense scrutiny amid mounting geopolitical tensions and technological competition between the United States and China. With Washington imposing new tariffs and launching security probes into semiconductor imports, and Beijing continuing to exert pressure on Taiwan, the island’s tech industry is walking a high-wire act between opportunity and vulnerability.
But at Computex 2025, the mood was electric.
Over four days, Computex draws hundreds of exhibitors and thousands of visitors from around the globe to showcase the latest in chips, AI systems, robotics, quantum computing, and edge devices. Taiwan’s own companies—including TSMC, Foxconn, MediaTek, and Acer—stood front and center, unveiling advances aimed at moving AI capabilities from massive data centers into portable, autonomous, and personalized technologies.
“From Agentic AI driving smarter personal devices to Physical AI reshaping autonomy, the show maps out the next frontier,” noted Counterpoint Research in a pre-event briefing.
For Huang, this moment is deeply personal. Born in Taiwan and raised in the U.S., he has frequently described Taiwan as the “heart of innovation.” Nvidia, whose graphics processing units (GPUs) underpin many of the world’s leading AI models, including OpenAI’s GPT series, relies heavily on Taiwan’s chip manufacturing capabilities, particularly those of TSMC.
The planned AI supercomputer, according to Nvidia, will be built in partnership with TSMC, electronics assembler Foxconn, and Taiwan’s Ministry of Economic Affairs. It will serve as a national AI hub, training next-generation language models, powering simulations for autonomous systems, and supporting Taiwan’s AI startups.
“This isn’t just about computing power,” said Huang. “It’s about building an ecosystem—engineers, researchers, applications, and enterprise solutions—all anchored in Taiwan.”
While the announcement was met with applause in Taipei, it also underscored the high stakes for Taiwan’s tech sector in the face of evolving trade policy.
In April, the U.S. administration under President Donald Trump initiated a national security investigation into foreign-made semiconductor components—signaling potential new tariffs or restrictions. This came on top of threats to impose a 32% tariff on advanced chip exports unless production is shifted to U.S. soil.
For export-reliant Taiwan, these measures could pose a significant risk to its dominance. TSMC, the crown jewel of Taiwan’s economy, has already committed more than $165 billion in investments into U.S.-based facilities, including major plants in Arizona and Texas. Other firms, like GlobalWafers, are following suit.
“This is a defensive move,” said Eric Smith, lead analyst at TechInsights. “Taiwanese companies are expanding in the U.S. to protect their access to American markets. At the same time, they want to retain their technical base and leadership back home.”
Many at Computex chose not to speak publicly about the tariffs, wary of political blowback. But in private, executives voiced concern that a bifurcation of the supply chain—one path for the U.S., another for China—could erode efficiency and increase costs.
Still, Taiwan’s government has signaled a willingness to adapt. “We recognize the geopolitical landscape is shifting,” said Minister of Economic Affairs Wang Mei-hua. “Our focus is to protect Taiwan’s position as a trusted partner, while diversifying our strategic relationships.”
Beyond the trade chessboard, the supercomputer project signals a national bet on AI as a future growth engine. AI-related investments in Taiwan have grown by more than 180% over the past three years, according to the Industrial Technology Research Institute.
Paul Yu, senior tech analyst at the Witology Markettrend Research Institute, believes Taiwan is at a “critical juncture.”
“Over the past two and a half years, significant investment has driven rapid advances in AI technology,” he said. “2025 to 2026 will be the crucial period for transitioning AI model training into profitable applications.”
The supercomputer could become the backbone for this transition—enabling local companies to train models in natural language processing, computer vision, and biomedicine without having to rely on expensive overseas infrastructure.
“This is how Taiwan can avoid being reduced to just a manufacturing node,” Yu said. “We need to build intellectual capital around AI, not just fabs and facilities.”
For Nvidia, the project enhances its positioning as the most critical player in the AI hardware stack. The company’s latest GPUs and systems, including the H200 Tensor Core GPUs launched earlier this year, are optimized for large-scale model training and inference.
Nvidia has also been actively pushing its “AI Factory” concept—a platform model that combines hardware, software, and services to deliver end-to-end AI capabilities. The Taiwan supercomputer will be among the first full-scale deployments of this vision in Asia.
By situating the project in Taiwan, Nvidia is also signaling confidence in the island’s resilience despite geopolitical tremors.
“There are so many smart companies here, there are so many innovative and spirited companies,” Huang told reporters. “I fully expect Taiwan to continue to thrive… before, after, throughout.”
Despite the optimism, clouds loom. Beijing has stepped up military drills near Taiwan in recent months, raising concerns about potential blockades or conflict. In such a scenario, global access to advanced chips—and the data centers, AI models, and consumer electronics they enable—could be severely disrupted.
This “silicon shield,” as some analysts call it, has long been viewed as a deterrent to Chinese aggression. But as the U.S. and Europe push to “de-risk” their tech supply chains, Taiwan’s unique leverage may weaken.
“At some point, you have to ask—what happens if the world no longer depends on Taiwan for chips?” said political economist Chang Chun-hsi of National Chengchi University. “That would fundamentally alter Taiwan’s strategic value.”
In response, Taiwan is doubling down—not just on chip fabs, but on higher-level tech infrastructure, education, and R&D. The AI supercomputer is only the first step in a broader initiative to ensure the island remains indispensable.
As AI becomes the defining technology of the 21st century, the location and control of its infrastructure become matters of national interest. Taiwan’s investment in an AI supercomputer isn’t just a tech story—it’s a geopolitical signal.
“We’re seeing a battle not just for market share, but for influence over the next generation of computing,” said Smith of TechInsights. “Where the chips are made, where the models are trained, where the breakthroughs happen—those will shape global power for decades.”
