Nvidia, on January 26, unveiled a new family of open-source AI models aimed at making weather forecasting faster and less expensive as part of the company’s broader push to provide open-source software.

With strong demand for AI servers, TSMC—holding the vast majority of AI chip orders—is executing major expansions in advanced process technology and packaging capacity. As TSMC and Nvidia light the way for AI development, related semiconductor and electronics suppliers across Taiwan are investing heavily to boost production capabilities in response to surging orders.

The removal of US tariffs on Taiwan’s machine tools has leveled the playing field with major competitors Japan and South Korea, offering some relief to the industry. However, while this short-term resolution eases concerns, long-term challenges such as exchange rate fluctuations remain unresolved. Even as market doubts fade and demand shows signs of recovery, Taiwanese manufacturers cannot afford complacency.