During the annual Computex technology exhibition in Taipei, industry giants including Jensen Huang, NVIDIA, Intel and South Korea s SK Group highlighted Taiwan s growing importance in the global AI race. At the same time, China intensified military activity around the island, underscoring the strategic risks surrounding one of the world s most critical technology hubs.
Taiwan is home to TSMC, the world s largest contract chipmaker and a key supplier to companies such as Apple and Nvidia. The island also hosts Foxconn, one of the largest producers of AI servers and technology hardware.
While executives discussed the future of AI, Taiwan s coast guard was engaged in a tense standoff with Chinese vessels near the Taiwan-controlled Pratas Islands in the South China Sea. During the June 2–5 event, Taiwan reported the presence of 79 Chinese military aircraft operating near the island, while Beijing conducted additional combat-readiness patrols around Taiwan.
As AI heavyweights including Nvidia, Intel and SK Group last week championed Taiwan s significance as a crucial hub for the global supply chain, a hostile exchange with China was brewing at sea https://t.co/6bKInotRlI
— Reuters (@Reuters) June 8, 2026
The timing highlighted a growing concern among policymakers and investors: the world s AI revolution is increasingly dependent on an island facing constant military pressure.
Speaking at the opening of Computex, Lai Ching-te stressed that peace in the Taiwan Strait remains essential for global economic stability and the technology industry. He reaffirmed Taiwan s commitment to maintaining regional stability and protecting its role in global supply chains.
Meanwhile, Nvidia CEO Jensen Huang described Taiwan as the ‘epicentre’ of technology manufacturing. He revealed that Nvidia s annual spending in Taiwan is expected to reach approximately $150 billion, a dramatic increase from levels seen just a few years ago. AMD has also announced investments exceeding $10 billion in Taiwan s AI sector.
Security experts, however, warn that economic confidence may be masking deeper risks. According to analysts, governments and financial markets may be underestimating the consequences of any future crisis in the Taiwan Strait.
The contrast could hardly be sharper, inside Taipei s exhibition centers, executives were showcasing the next generation of AI. Outside, military activity served as a reminder that the technology powering the future depends heavily on a region at the center of one of the world s most sensitive geopolitical flashpoints.
