Despite numerous headwinds currently facing the AI industry outlook, it is undeniable that the AI sector—especially AI servers—will continue to be a cornerstone of Taiwan’s ICT industry in 2025. For key players following Nvidia’s trajectory, including Foxconn, Quanta, and Wistron, AI servers are expected to drive their growth throughout 2025.

Parade Technologies, a leading high-speed interface IC supplier, projects a resilient second quarter of 2025, with demand poised to match the vigor of the first quarter. The company’s forecast excludes tariff impacts, which remain unpredictable, yet initial effects appear more beneficial than detrimental.

Asus’s AI server business hit its five-fold revenue growth target a year early in 2024. By 2025, server operations are projected to contribute 15% of the company’s total revenue. Asus’s early move to set up a manufacturing line in California—initially to serve US and European clients—paid off as US tariff enforcement tightened in late 2024. The facility’s launch helped reduce the company’s exposure to rising trade tensions.

STMicroelectronics offered a better-than-expected revenue forecast for the second quarter, suggesting a potential recovery in demand for automotive and industrial semiconductors. However, weaker-than-expected gross margin guidance and the absence of a full-year outlook tempered optimism, leaving analysts divided over whether the uptick reflects genuine demand or a short-term boost from tariff-related inventory moves.