Computex 2025: Taiwan's Tech Dominance Shines Amid AI and Global Trade Shifts

The Computex 2025 conference, held from May 19 to 23 in Taipei, underscored Taiwan’s indispensable role in the global technology landscape, even as the event leaned heavily into enterprise AI applications with minimal focus on consumer innovations. While last year’s show dazzled with Nvidia’s multi-year AI chip roadmap, this year’s gathering was more subdued, reflecting industry caution amid U.S. restrictions on China’s tech ambitions and the ripple effects of DeepSeek’s January debut.

Keynotes from industry giants like Nvidia’s Jensen Huang, Foxconn’s Young Liu, and Intel’s Lip-Bu Tan highlighted Taiwan’s manufacturing prowess and strategic partnerships while grappling with uncertainties like U.S. tariffs and China’s rising AI capabilities. The event, dubbed “AI Next,” also saw Nvidia announce NVLink Fusion, a technology to enhance chip-to-chip communication, and Foxconn unveil plans for a 100-megawatt AI center with Nvidia, reinforcing Taiwan’s position as a tech epicenter.

Enterprise AI Takes Center Stage

Unlike 2024’s consumer-focused promises of AI revolutionizing daily life, Computex 2025 pivoted to enterprise applications. Qualcomm, which previously championed AI’s consumer benefits, shifted to showcasing business-oriented solutions, emphasizing data center efficiency and corporate workflows. Foxconn’s keynote outlined ambitious plans for AI in smart cities, robotics, and electric vehicle design but offered little for individual consumers.

Asustek’s co-CEO Samson Hu tempered expectations for AI PCs, citing immature software and U.S. tariffs that could raise prices by up to 10%, delaying mainstream adoption for one to two years. This enterprise focus reflects a broader industry trend, as companies prioritize high-margin, large-scale AI deployments over consumer gadgets.

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DeepSeek Reshapes AI Landscape

The January launch of DeepSeek, a Chinese AI model, sent shockwaves through the industry, spotlighting China’s software advancements and increasing computational demands. Nvidia’s Jensen Huang openly praised China’s software talent, noting that DeepSeek’s reasoning models require 100 to 1,000 times more computing power than previous systems.

This shift has intensified pressure on chipmakers to deliver more robust solutions, with Nvidia’s NVLink Fusion—announced at Computex to connect Nvidia chips with third-party CPUs—aiming to meet these needs. Meanwhile, Huawei’s concurrent AI developer event showcased its Ascend chips, positioning them as alternatives to Nvidia’s offerings, while Xiaomi revealed a 3-nanometer mobile chip to rival Qualcomm’s.

Taiwan’s Strategic Charm Offensive

Amid U.S.-China tech tensions, Taiwan’s role as a semiconductor and manufacturing hub was front and center. Intel’s new CEO, Lip-Bu Tan, used Computex to strengthen ties with Taiwanese partners, distancing himself from his predecessor’s criticisms of Taiwan Semiconductor Manufacturing Co. (TSMC). Nvidia also dedicated significant time to celebrating its local collaborations, with Huang announcing plans for a new global headquarters, “Constellation,” in Taipei.

Recent reports highlight TSMC’s record-high April revenue and Foxconn’s Q1 2025 revenue surge, driven by AI server demand, underscoring Taiwan’s economic leverage. SoftBank’s Masayoshi Son, though less visible, was present, signaling continued investment interest in Taiwan’s tech ecosystem.

Did You Know?
Taiwan produces over 60% of the world’s semiconductors and 90% of advanced chips, making it a linchpin in the global tech supply chain, according to industry estimates.

Geopolitical and Economic Uncertainties

The specter of U.S. President Donald Trump’s trade policies loomed large, with new tariffs threatening to disrupt global tech supply chains. Huang warned that U.S. chip export restrictions to China could backfire, empowering local players like Huawei to fill the gap. He described China’s tech firms as “talented and determined,” backed by significant government support.

Meanwhile, TSMC’s $100 billion investment in U.S. production lines, accelerated by tariff pressures, reflects a shifting global manufacturing landscape. The Middle East also emerged as a new player, with a U.S. delegation—including Huang and other tech leaders—visiting Saudi Arabia pre-Computex to explore AI trade opportunities.

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Data Center Debate Lingers

A critical question lingered unspoken: has the tech industry overestimated the need for AI data centers? Volatile stock movements for Nvidia, Meta, and Microsoft in 2025 reflect investor uncertainty about the scale of AI infrastructure investments, estimated by Huang at “tens of trillions of dollars.” While Computex attendees, who profit from server and component demand, remained optimistic, the lack of open discussion on this topic highlighted a cautious industry outlook.

Innovations like Seasonic’s prototype PSU with malfunction sensors and Noctua’s pump-less thermosiphon cooler, showcased at Computex, signal ongoing efforts to improve data center efficiency, but broader concerns persist.