Why Is the AI Boom Creating a Physical Race That Money Alone Cannot Buy?
Why Is the AI Boom Creating a Physical Race That Money Alone Cannot Buy?
This Inside Taiwan episode explains how the AI boom is reshaping global supply chains. It covers Taiwan’s overtime surge, record exports, shifting trade flows, Gudeng’s strategic decisions, South Korea’s national foundry plan, China’s demand for advanced processors, the rise of SMRs, and the origin story of the ASML and TSMC partnership.
Q1. Why are advanced component makers hesitant to expand production in the US?
Gudeng Precision says building in the US is premature due to high costs and limited ecosystem density. The company notes that you cannot create a world class supply chain by building a few fabs. Taiwan’s Hsinchu model reflects decades of collaboration and specialized talent.
Q2. Why does the ASML and TSMC origin story prove that ecosystems cannot be bought?
In 1989 ASML failed its first trial at TSMC and lost to Nikon. Persistence from Hermes engineers and ASML’s problem solving eventually earned a second chance at Fab 2. The partnership grew through trust, local expertise, and decades of collaboration rather than capital alone.
Q3. Why does the ecosystem define Taiwan’s long term advantage in the AI era?
Numbers show momentum, but relationships explain leadership. Taiwan’s supplier networks, engineering culture, and shared problem solving create an ecosystem that nations cannot replicate quickly. Machines can be purchased. Capabilities must be earned.
Listen to the full episode of Inside Taiwan for deeper signals shaping the world’s most valuable supply chain.
This Inside Taiwan episode explains how the AI boom is reshaping global supply chains. It covers Taiwan’s overtime surge, record exports, shifting trade flows, Gudeng’s strategic decisions, South Korea’s national foundry plan, China’s demand for advanced processors, the rise of SMRs, and the origin story of the ASML and TSMC partnership.
Q1. Why are advanced component makers hesitant to expand production in the US?
Gudeng Precision says building in the US is premature due to high costs and limited ecosystem density. The company notes that you cannot create a world class supply chain by building a few fabs. Taiwan’s Hsinchu model reflects decades of collaboration and specialized talent.
Q2. Why does the ASML and TSMC origin story prove that ecosystems cannot be bought?
In 1989 ASML failed its first trial at TSMC and lost to Nikon. Persistence from Hermes engineers and ASML’s problem solving eventually earned a second chance at Fab 2. The partnership grew through trust, local expertise, and decades of collaboration rather than capital alone.
Q3. Why does the ecosystem define Taiwan’s long term advantage in the AI era?
Numbers show momentum, but relationships explain leadership. Taiwan’s supplier networks, engineering culture, and shared problem solving create an ecosystem that nations cannot replicate quickly. Machines can be purchased. Capabilities must be earned.
Listen to the full episode of Inside Taiwan for deeper signals shaping the world’s most valuable supply chain.
