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Citi Identifies Four Taiwanese Tech Leaders Poised to Dominate the Post-2028 AI Wave
Electronic Technology · Semiconductors · economic_daily · 2026-09-21
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Citi's latest research highlights that AI hardware growth is expanding beyond GPUs, naming TSMC, Foxconn, MediaTek, and ASE Technology as key beneficiaries of the long-term AI infrastructure cycle.
What Happened
AI Infrastructure Outlook: Citi analyst Chen Chia-yi notes that investor focus has shifted from short-term GPU demand to the sustainability of AI infrastructure beyond 2028. Growth is expected to broaden into networking chips, ASICs, CPO, and power infrastructure, revitalizing interest in logic semiconductors.
TSMC's Strategic Role: TSMC remains at the center of the AI hardware transition, with significant growth projected for 2027 driven by 2nm contributions and increased 3nm shipments. The company is focusing on high-value wafer manufacturing and SoIC, while outsourcing back-end processes to partners.
MediaTek and ASE Integration: MediaTek is seeing an expanded role within Google's TPU ecosystem, with advanced process nodes significantly boosting per-unit revenue. Meanwhile, ASE Technology is capturing opportunities from TSMC’s advanced packaging outsourcing, bolstered by growing demand from major clients like AMD.
Foxconn's Rack-Level Gains: Foxconn is a primary beneficiary of the shift toward rack-level AI solutions, with the transition to the Vera Rubin architecture expected to drive higher average selling prices. The company is also expanding its footprint in ASIC development and cloud service provider systems to fuel future earnings growth.