Chip capacity an asset for Taiwan, researcher says

Countries aiming to develop their AI capabilities, particularly those unable to build advanced models from scratch, are increasingly seeking partnerships with leading AI powers. Taiwan's role as the primary global manufacturer of advanced AI chips and servers positions it uniquely to influence these collaborations, providing what one US researcher described as potentially "the strongest card in the world" in such discussions.

This leverage could allow Taiwan to negotiate for specific benefits, such as priority access to advanced AI models developed by US companies or preferential consideration for computing resources. While Taiwanese companies like TSMC are expanding investments in the US, the immense global demand for computing power and the multi-year timeline for new foundries to reach full production mean existing facilities in Taiwan will remain critical in the near term and longer term.

Furthermore, Taiwan's reported intention to tighten export controls on AI chips, aligning its measures with those of the US, could serve as a geopolitical advantage. This alignment, confirmed by Minister of Economic Affairs Kung Ming-hsin, is seen as a way to enhance Taiwan's relationship with Washington, rather than necessarily damaging its ties with Beijing, given Taiwan's existing deep connections with the US across various sectors.