Rise of Asia in the AI era: APAC solidifies its position as infrastructure powerhouse at Open Compute Project; Taiwan establishes global technology connections
In the dynamic world of technology, Taiwan has emerged as a significant player, particularly in the realms of open hardware and AI. The island nation's strategic importance can be seen in its leadership in semiconductor manufacturing and AI data center infrastructure within the Asia-Pacific region.
Taiwan's semiconductor industry, spearheaded by companies like TSMC, accounts for approximately 20% of the global market. TSMC's pioneering of the fabless foundry model and commercial semiconductor production since the 1970s has made Taiwan a critical hub for chip production, underpinning open hardware ecosystems worldwide [1][3].
In the realm of AI data center infrastructure, Taiwan is witnessing rapid growth in hyperscale data centers supporting AI startups. This growth is driven by government subsidies and strong industry players such as server ODMs like Foxconn. These data centers feature advanced cooling technologies, essential for high-density GPU deployments that power AI workloads. Taiwan's data center market is projected to grow at a rate of 27.6% CAGR [2].
Moreover, Taiwan is pursuing sovereign cloud zones operated by major global cloud providers like AWS, Microsoft, and Google. This move aims to comply with local data laws while maintaining operational control, thereby strengthening Taiwan’s sovereignty in AI computing infrastructure and aligning with regional tech cooperation [2][1].
Taiwan's commitment to long-term reinvestment, as demonstrated by TSMC and Foxconn's nearly 100% net profit reinvestment into partnerships and infrastructure development, is a testament to its ambition to remain a leader in the tech sector. This cohesion between semiconductor innovation, data center expansion, and government policy positions Taiwan as both an Asia-Pacific open hardware development leader and a sovereign AI compute hub.
The Open Compute Project (OCP) has recognised Taiwan's potential, with the OCP APAC Summit held in Taipei on August 5, 2025. Participation from the region's corporate members has reached record levels, and OCP's plans to return to Taipei in 2026 have been confirmed [4]. IDC projects that 36% of the over US$190 billion in OCP-related equipment spending will come from the Asia-Pacific region [5].
Cliff Grossner, Chief Innovation Officer at the OCP Foundation, called APAC an "extremely vibrant community." Over the past year, 20% of contributions to OCP projects included an APAC-based corporate member, and APAC accounts for 28% of OCP's experience centers [6].
Taiwan's technology sector is not only thriving within the Asia-Pacific region but is also influencing global technology supply chains and AI ecosystems. As the conversation about AI-driven innovation continues at the upcoming OCP Global Summit, it is clear that Taiwan is entering a "golden age" lasting at least 10 years, driven by its manufacturing base, dense industrial clusters, and commitment to long-term reinvestment [7].
For a deeper dive into rack-scale server design and thermal breakthroughs, readers are invited to explore the companion article available with a trial [8]. Hwang, a key figure in the tech industry, has suggested that hardware will play a significant role in the evolution of AI [9]. As Taiwan continues to innovate and grow, its impact on the global tech landscape is set to be profound.
References: [1] https://www.tsmc.com/about/company-profile/history [2] https://www.reuters.com/business/technology/taiwans-ai-startup-scene-thrives-despite-geopolitical-pressures-2021-06-17/ [3] https://www.tsmc.com/about/company-profile/business-summary [4] https://www.ocp.org/apac-summit-2025/ [5] https://www.idc.com/getdoc.jsp?containerId=prUS49224522 [6] https://www.ocp.org/apac-summit-2025/ [7] https://www.nikkei.com/asia/taiwan/taiwan-enters-golden-age-driven-by-semiconductors-and-ai/ [8] [Companion article title and link] [9] [Source for Hwang's statement]
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