Taiwan's Hardware Makers, Computex and the AI Server Boom — 2026-10-21
Goldman Sachs has significantly raised its 2028 AI server market forecast, predicting the sector will exceed $1 trillion, directly boosting outlooks for Foxconn, Wiwynn, and Wistron. Simultaneously, Taiwan's government is advancing a $4 billion industrial park initiative in Texas to localize Nvidia's supply chain, while new export controls criminalize AI server smuggling to China.
Taiwan's Hardware Makers, Computex and the AI Server Boom — 2026-10-21
Top developments
Goldman Sachs Upgrades AI Server Forecast to $1 Trillion by 2028
On October 19, Goldman Sachs revised its global server shipment estimates upward, driven by sustained generative AI infrastructure investment and rising memory costs. The bank now predicts the AI server rack market will surpass $1 trillion in value by 2028, accounting for over 60% of the total server market. This upgrade specifically highlights Foxconn (2317), Wiwynn (6669), and Wistron (3231) as key beneficiaries of the shift toward higher-specification systems and rack-level solutions.
Wiwynn Posts Record Revenue on Liquid Cooling and ASIC Demand
Wiwynn reported September 2026 consolidated revenue of NT$172.62 billion, marking a 99.99% year-over-year increase and a 19.62% month-over-month rise. This record high reflects strong demand for AI servers, particularly those featuring liquid cooling and ASIC-based platforms. The company is actively participating in the trial production of NVIDIA’s Vera Rubin NVL72 and showcasing AMD Helios solutions, positioning itself for continued growth in 2027.
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Taiwan Plans $4 Billion Texas Industrial Parks for Nvidia Suppliers
Taiwan’s government is backing a plan to develop industrial parks in the United States, starting with a $4 billion complex in Texas, to support Nvidia’s supply chain. This initiative aims to mitigate geopolitical risks and address Nvidia CEO Jensen Huang’s admission that the company can currently only fill about 70% of demand. The move is designed to create a comprehensive local supply base for Nvidia and TSMC partners, potentially reshaping the global hardware manufacturing footprint.
New Export Controls Criminalize AI Server Smuggling to China
The Taiwanese government intends to add advanced semiconductors and AI servers to its controlled-items list, imposing a five-year prison penalty for smuggling restricted hardware into China. This regulatory shift closes a legal gap and strengthens enforcement against illicit chip transfers, signaling a tighter security posture for Taiwan’s critical tech exports.
Local view
Local financial media, including United Daily News (UDN) and Anue (Cnyes), are closely tracking the impact of Goldman Sachs' revised forecasts on local stock performance. Money Weekly highlights Wiwynn’s operational strength, noting that Amazon’s Trainium 3 chip ramp-up and the upcoming liquid-cooled versions are critical growth drivers for the supply chain. Meanwhile, Next Apple News reports that Nvidia’s recent showcase of "NVLink PTFE Board" technology at the OCP Global Summit 2026 is driving interest in new PCB materials, with local suppliers like TUC and EMC positioning themselves for mass production challenges.
Context & numbers
- September Revenue: Six major Taiwanese server and networking contract manufacturers booked combined revenue of NT$2.18 trillion (US$67.3 billion) in September 2026, a 55.9% year-over-year increase.
- Q3 2026 Performance: Wiwynn’s Q3 revenue reached NT$434.618 billion, up 56.25% quarter-over-quarter and 62.89% year-over-year.
- Global Shipments: TrendForce projects global AI server shipments to grow 32.2% this year to approximately 2.82 million units, driven by Tier-two data center operators like Tesla and CoreWeave.
On the radar
- Supermicro Guidance: US server maker Supermicro reported strong Q1 FY2027 results, with revenue guidance of $18.5–$19.5 billion (up 279% YoY), reinforcing the bullish outlook for its Taiwanese supply chain partners.
- Nvidia Quantum Breakthrough: Nvidia announced a quantum computing breakthrough in Berlin, which is expected to further stimulate demand for high-performance computing components from the Taiwan supply chain.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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