Taiwan ramped up its artificial intelligence ambitions on Friday as President Lai Ching-te inaugurated a new cloud computing center built around one of the island’s most powerful supercomputers.
Lai Ching-te on Friday opened a new cloud computing center equipped with a powerful supercomputer, advancing its push for “sovereign AI.” The 15-megawatt site houses the “Nano 4” supercomputer.
Taiwan’s largest and most advanced supercomputer has been built with 1,760 of Nvidia Corp.’s (NASDAQ:NVDA) H200 chips and 144 of its Blackwell chips, Reuters reported on Friday, citing Taiwan’s National Science and Technology Council.
Also Read: Nvidia Powers $500 Million AI Factory In Taiwan As Global Race For Smarter Tech Heats Up
The government aims to use the cloud facility as a central engine for artificial intelligence development. It will also serve as a hub for high-performance computing, telecommunications, cloud services, and digital content.
Semiconductor Leadership
Taiwan dominates the global semiconductor industry, led by key contract chipmaker Taiwan Semiconductor Manufacturing Co. (NYSE:TSM).
Taiwan Semiconductor created the pure-play foundry model by producing chips for designers such as Nvidia, and contributing heavily to Taiwan’s GDP.
Nvidia became the first company to top the $4.5 trillion market cap in October as Big Tech giants remain aggressively invested in their AI endeavours, fueling demand for its GPUs.
Analyst Outlook
Despite concerns about a potential global AI bubble, Taiwan's tech-heavy equities have continued to rally. Analysts told Reuters that investor confidence reflects the island's entrenched position within AI supply chains.
Goldman Sachs strategists forecast that hyperscaler investment will rise sharply through 2027, a trend that could lift Taiwan’s benchmark toward roughly 30,200 in the next 12 months.
Nordea’s Gina Kim said the structural demand story for AI and high-end semiconductors remains intact.
Domestic investors appear unconcerned. Piter Yang of Fuh Hwa Securities noted local buyers are betting on Taiwan’s role as the lynchpin of the AI supply chain.
London-based Alquity’s Kieron Kader added that Taiwan’s ecosystem, anchored by proximity to Taiwan Semiconductor, creates a hard-to-replicate competitive moat.
Price Action: Taiwan Semiconductor shares were down 2.84% at $296.20 at the time of publication on Friday. The stock is approaching its 52-week high of $313.98, according to Benzinga Pro data. NVDA was down 0.79%.
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