How Taiwan is leading the way in the AI Server and AI PC markets

Taiwan has played a pivotal role in the buildout of the global generative AI compute infrastructure in 2023. TSMC has led the way in the manufacturing of the advanced semiconductors required for high-performance AI servers, while Foxconn, Gigabyte, Quanta and other leading Taiwan-based component makers and system integrators have established themselves as the top global suppliers for this burgeoning segment.

With demand for AI servers projected to continue its rapid growth in 2024, Taiwan is set to strengthen its leadership position in this market. In addition, the island’s high-tech industry is expected to help drive a recovery in the PC market with the launch of a new wave of AI PCs in the middle of next year.

Featuring next-generation processors from Intel, AMD, Qualcomm, and Nvidia, AI PCs are expected to spark a major replacement cycle in 2024 with their ability to run generative AI models and applications like ChatGPT, Midjourney, and Microsoft CoPilot locally.

Available in both notebook and desktop form factors, AI PCs are expected to be particularly popular in the commercial sector, where they will be used to carry out white collar AI tasks such as creating presentations, composing emails, compiling reports, and generating rich multimedia content.

In its latest report, research company Canalys projects a rise of 8% in global PC shipments next year to 267 million units, with AI PCs accounting for 19% of the total volume. If their forecast is correct, that spells good news not just for Taiwan’s PC makers but the industry overall.