American defense technology companies are strengthening relationships with Taiwan’s tech sector as the Biden administration’s AI action plan signals increased military AI spending, potentially boosting demand for dual-use hardware and cybersecurity systems.

Amid surging global demand for AI-driven robotics, Taiwan’s industry leaders are banding together to form strategic alliances aimed at capturing new opportunities, but success won’t come easy. Key challenges include the lack of standardized platforms and critical components, as well as unresolved issues around regulations, certification, and safety testing. While the move has been broadly welcomed, concerns persist over the execution gap between ambition and real-world complexity.

Benefiting from a tariff buffer period, customers actively stocked up in advance. Powertech Technology Inc. (PTI)’s invested testing and packaging subsidiary, Greatek Electronics, reported consolidated revenue of NT$8.218 billion (US$276.8 million) for the first half of 2025, marking a year-over-year increase of 10.1%. The utilization rate in the second quarter rose by 5% quarter-over-quarter, although the appreciation of the New Taiwan dollar and rising electricity costs impacted gross margin performance.

Taiwan Mobile (TWM) has launched a “Superman Project” aimed at equipping employees with the know-how to implement AI tools across all of the company’s business segments, from IT development and backend operations to physical retail and customer support. In addition to a technical upgrade, the move represents a total transformation of corporate culture as AI promises to accelerate digital transition, offering other companies a blueprint for AI-driven transformation.