Taiwan

Intelligence for Better Decision Making

Global Acceleration of AI Server Expansion and Supplier Strategies
May 1, 2025 | Indirect Indicator

Global technology companies are rapidly expanding AI server capacities and refining supplier strategies to meet surging demand.


Chris Bergey, senior vice president and general manager of Arm’s terminal products division, will present Cloud to Edge: Artificial Intelligence Development Built on the Arm Architecture at the Arm Advanced Technology Summit on May 19 in Taipei as part of COMPUTEX 2025. He will examine AI’s market potential and the semiconductor industry’s collaborative efforts to advance next-generation AI. Two days later at the Generative AI Re-Evolution forum on May 21, James McNiven, vice president of product management at Arm, will address the rising computational demands and energy consumption of large AI models. He will propose ways to boost computing efficiency through high-performance architectures and optimized software design, ensuring sustainable AI development.

**COMPUTEX 2025 runs from May 20 to 23 under the theme AI Next and will feature nearly 1,400 manufacturers showcasing Smart Computing & Robotics, Next-Generation Technology, and Future Mobility.**
Registration for Arm’s sessions is now open.

**Inventec Corp, a leading Taiwan-based contract electronics manufacturer, obtained board approval for up to US$85 million in capital and bank-loan funding to build an AI services production facility in Texas through its US subsidiary.**
The project, which excludes production equipment costs, aims to counter US tariffs imposed under the previous administration. Construction is slated for May through December, though a mass-production timeline remains unspecified. This investment supports Inventec’s strategy to diversify manufacturing locations, mitigate a 32 percent US duty on Taiwan exports, and strengthen ties with American clients. Inventec already operates server and laptop plants in Mexico and began exploring US investments in January to address logistical challenges in shipping large servers. The company expects continued growth in server sales driven by generative AI, high-performance computing, cloud services, and 5G, and reported an 18.54 percent year-on-year net profit increase in 2024.

**MediaTek Chairman Tsai Ming-kai announced the company’s push into cloud and edge AI markets through a collaboration with Nvidia on a new series of edge-computing chips that integrate CPU, GPU, and NPU.**
MediaTek is also advancing AI accelerators, strengthening supply-chain capabilities, and expanding high-performance computing and generative AI solutions. Last year’s launch of the Dimensity 9400 5G Agentic AI chip—featuring an all-big-core CPU design and notable energy efficiency—doubled flagship chip revenue to over US$2 billion and enriched the AI ecosystem. To enhance device connectivity, MediaTek is rolling out Wi-Fi 7 and 5G technologies, while automakers adopt its smart cockpit and in-vehicle solutions. Despite ongoing geopolitical challenges, the company plans to use TSMC’s 3 nm process for custom chips and AI accelerators by 2027.

**Quanta Computer Chairman Barry Lam reported rapid shipments of AI servers and expects order volumes to surpass 2024 levels throughout this year.**
Speaking at a National Taiwan University forum, he noted a gradual recovery in manufacturing but warned that the US-China tariff war and US presidential statements could introduce market uncertainties. Lam described the AI market as still evolving through industrial, digital, and AI revolutions and expressed confidence in Quanta’s ability to navigate these challenges successfully.
Major Investments and Facility Expansions Accelerate Transformation of Taiwan’s Semiconductor Sector
May 1, 2025 | Indirect Indicator

Major investments and facility expansions are reshaping the semiconductor industry in Taiwan and driving global growth.


On April 29, 2025, Taiwan’s Ministry of Economic Affairs Investment Review Committee approved six significant transactions valued at NT$13.6 billion (about US$406.5 million). Inbound investments include a NT$2.62 billion injection by Dutch semiconductor equipment maker ASML into its subsidiary Cymer, Inc. to boost installation, sales, and maintenance of semiconductor laser light source equipment; a NT$2.27 billion capital infusion from Japan’s Sumitomo Corporation into Sumitronics Taiwan Co., Ltd. to support import-export trade and sales of semiconductor and electronic parts materials; and an NT$8.75 billion increase in Stonepeak Oceanview Taiwan Co.’s capital by Stonepeak Oceanview (Cayman) Holdings Co., with NT$8.3 billion earmarked for the Formosa 2 Development Co. wind power generation project.

**The committee also cleared three outbound deals.**
Acer Inc. acquired 100 percent of Embedded City Limited for US$86.05 million—gaining indirect ownership of Taiwan Zhenhua Electronics and Posiflex Technology, Inc.—to expand its industrial computing capabilities. Yageo Corporation launched a public tender for a full stake in Japan’s Shibaura Electronics Co., Ltd. at roughly 77.8 billion Japanese yen (about US$521.7 million) to strengthen its thermistor sensor manufacturing. Meanwhile, ASMedia Technology Inc. purchased US-based Techpoint, Inc. for approximately US$391 million to broaden its integrated circuit design business.

Monitored Intelligence for Taiwan - May 2, 2025


News
Media
545

Government
Releases
33

City/State
Releases
76

Embassy
Releases
1
Foreign
Service
Advisories
0
Academic/
Think
Tank
2


Podcasts
0


Videos
0

Social
Media
0

Business
Releases
5

Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

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7
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US to continue push for Taiwan’s WHO participation

Taipei Times | English | News | May 2, 2025 | Geopolitical Conflict and Disputes

The United States continues to advocate for Taiwan's meaningful participation in the World Health Organization (WHO), despite its planned withdrawal from the organization set for January 2026. A US Department of State spokesperson emphasized Taiwan's role as a reliable partner in global health security and indicated that the US would persist in supporting Taiwan's inclusion in international organizations, including the WHO.

During recent WHO Executive Board meetings, the US urged member states to allow Taiwan's meaningful participation, specifically as an observer at the upcoming World Health Assembly (WHA) meeting in May 2025. These remarks were made in response to inquiries about the US's stance on Taiwan's participation during the WHA, particularly as the island has been excluded since 1972 due to pressure from China, except for a brief period from 2009 to 2016.

Since 2017, Taiwan has worked with its allies, including the US, Japan, and the EU, to pursue participation in the WHA but has yet to achieve a breakthrough. The situation remains challenging due to ongoing political tensions and China's influence in the WHO.

英特爾強化台鏈 聯發科、欣興入夥

Intel strengthens Taiwan chain MediaTek, Xinxing joins

Yahoo Finance | Local Language | News | May 2, 2025 | UndeterminedSupply Chain Issues

Intel is enhancing its collaboration with Taiwanese manufacturers, marking a significant step in its semiconductor strategy. The partnership with MediaTek has resulted in the successful tape-out of their first chip utilizing Intel's 16 process technology, which is about to enter mass production. Additionally, Unimicron has been integrated into Intel's advanced packaging ecosystem, with PowerMemory's Chairman Hsu Ching-Hsiang highlighting the importance of these collaborations in supporting chip security and intellectual property for Intel’s future clients.

MediaTek’s Vice President Vince Hu emphasized that Intel's foundry service capabilities are crucial for optimizing chip performance, reducing power consumption, and streamlining design areas. The Intel 16 process, being both mature and cost-effective, aligns well with MediaTek’s objectives in sectors like the Internet of Things, edge computing, and consumer electronics. MediaTek views its partnership with Intel as a strategic imperative for enhancing resilience given the regional dependencies in semiconductor supply chains. Hu also noted a major achievement with their first Intel 16 product, which met all design benchmarks on the first tape-out due to effective teamwork and the reliability of Intel's foundry services.

Intel is broadening its ecosystem alliances by incorporating chiplets and value chain partnerships, reaffirming collaborations with companies like Faraday and UMC. Faraday has highlighted the importance of close coordination in advanced 3D packaging, which is expected to be a significant growth area. Meanwhile, UMC announced that their joint work on the 12nm process with Intel is progressing well, aiming to deliver enhanced value to customers. Xinxing has also joined Intel’s advanced packaging ecosystem as an EMIB substrate manufacturer. Analysts anticipate a competitive landscape in advanced processing and packaging, with opportunities for Taiwanese firms to enter the U.S. supply chain, given the overlapping ecosystems of TSMC and Intel.

中共收買台灣幫派當攻台內應 情資地圖驚人內容曝光

The map of intelligence on the CCP buying off Taiwanese gangs as their internal collaborators in attacking Taiwan has shocking contents

Yahoo News Taiwan | Local Language | News | May 2, 2025 | Geopolitical Conflict and Disputes

China has engaged in bribing Taiwanese gangs to act as internal collaborators in potential military actions against Taiwan, resulting in the compilation of a comprehensive intelligence report titled the "Distribution Map of Taiwan's Gang Armed Forces." This document, exceeding 30,000 words, is likened to an "Operation Map for Seizing Taiwan" and includes critical details such as gang strongholds, mobilization capacities, individual gang leader contacts, and their pro-communist inclinations rated on an ABC system.

The analysis posits that China's strategy employs a three-pronged approach: disrupting the financial stability of these gangs, fostering connections with pro-communist elements, and utilizing tactical maps to instigate a coordinated offensive. It has been highlighted that certain temples in Taiwan have become operational bases for these gangs, serving as meeting locations and storage for materials that facilitate covert activities, including the infiltrating of Chinese individuals and money laundering operations.

Experts have noted that while some information within the report might be exaggerated, it nonetheless provides a significant insight into the vulnerabilities of Taiwan's local security systems. Current estimates suggest a stark imbalance in numbers, with Taiwan having around 70,000 police officers facing an estimated 200,000 to 300,000 gang members. If the Chinese Communist Party successfully converts these gangs to their cause, it could result in severe repercussions for Taiwan.

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