Super Micro and Nvidia Set Sights on Taiwan’s AI Hub

Ambitious Plans for Renewable Energy and AI Development Announced

Artificial intelligence server company Super Micro Computer Inc SMCI is teaming up with Taiwan’s Guo Rui to create a computation center powered by renewable energy in Taiwan, as reported by the Taipei Times.

In discussions involving Supermicro founder Charles Liang and Guo Rui chairman Lin Po-wen, Premier Cho Jung-tai has initiated a task force involving multiple government agencies. This team will focus on promoting renewable energy and helping with land acquisition for green energy projects, according to Executive Yuan spokesperson Michelle Lee.

In another development, Nvidia Corp NVDA has announced plans to establish a secondary headquarters in Taiwan, aimed to be on par with its operations in Silicon Valley.

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National Development Council Minister Paul Liu emphasized that Taiwan’s strong talent pool, established infrastructure, and location near major supply chains position it well to become a global center for AI innovation.

Both Taipei Mayor Chiang Wan-an and New Taipei City Mayor Hou You-yi are eager to attract Nvidia’s headquarters, offering a range of potential sites and incentives to make the investment appealing. Importantly, Supermicro is also a significant client of Nvidia.

Additionally, Nvidia’s supplier Taiwan Semiconductor Manufacturing Co TSM is reportedly exploring the establishment of five factories in Kaohsiung, Taiwan, predicting that the first plant could start production around 2025.

In response to this expected growth, the city government is planning water recycling plants and ultra-high-voltage substations to ensure reliable water and power supplies.

The geopolitical climate has also been notable. In September, President Joe Biden approved $567 million in defense assistance to Taiwan, enhancing its military capabilities amid rising tensions with China. Furthermore, the U.S. authorized a $228 million military sale to improve Taiwan’s aircraft combat capabilities.

In December, Taiwan Semiconductor introduced its advanced chip fabrication plant in Arizona, reflecting U.S. efforts to reduce reliance on China for semiconductor supplies. The company is planning two more fabs in Arizona, with an overall investment reaching $65 billion.

Price Actions: As of Friday, SMCI stock dropped 5.00%, trading at $32.06, while NVDA fell 2.62%.

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