AI infrastructure boom drives Taiwan suppliers to expand manufacturing in the US: Opportunities and challenges under industrial restructuring

Event Overview

On July 13, 2026, Nightfood Holdings Inc. (OTCQB: NGTF, through its subsidiary TechForce Robotics) announced that it is evaluating an expansion of up to 100,000 square feet of dual-region manufacturing capacity, covering both Taiwan and the United States, together with its strategic partner Jiun Jiang Enterprise Co., Ltd. ("JJ Enterprise"). This initiative aims to serve semiconductor, advanced packaging, and industrial automation customers—clients driving a new wave of capital expenditure for AI infrastructure.

This announcement is not an isolated event. TSMC has confirmed plans to open an advanced packaging facility in Arizona by 2029, adding CoWoS and 3D-IC packaging capabilities, and is actively encouraging Taiwanese suppliers of chemicals, equipment, and other materials to set up production nearby. Meanwhile, U.S. grid equipment (such as transformers) is facing supply shortages due to surging demand from AI data centers, with lead times extending from about one year in 2021 to several years.

Industry Background: Tight Supply Across the Board, from Chips to Equipment

Global semiconductor industry sales are projected to reach $975 billion in 2026 (Deloitte forecast), with AI chip revenue approaching $500 billion. However, the significant gap between chip sales growth (22% in 2025) and silicon wafer shipment growth (only 5.4%) indicates that growth is heavily concentrated in complex, equipment-intensive processes. This means more equipment investment and longer production cycles per wafer, further intensifying capacity pressures in areas such as advanced packaging, lithography equipment, and automation systems.

AI infrastructure construction is often simplified to GPUs and data centers, but the actual supporting chain is much longer. From power transformers to cleanroom robots, every node faces delivery bottlenecks. A recent Reuters report noted that lead times for high-voltage transformers in the U.S. have extended to several years, yet such equipment is essential infrastructure for new wafer fabs and data centers.

In-Depth Analysis

Technology Impact

• Technology Roadmaps Involved:
• Advanced Packaging: CoWoS (Chip-on-Wafer-on-Substrate) and 3D-IC have become critical bottlenecks for AI chip performance improvement. TSMC's introduction of these technologies at its Arizona fab marks the start of domestic packaging capabilities from scratch in the U.S.
• Semiconductor Automation and Robotics: There is a surge in demand for automation in wafer handling, precision assembly, and inspection. TechForce Robotics focuses precisely on such non-standard equipment.
• Smart Manufacturing Systems: GlobalFoundries has proposed the concept of "Physical AI," forecasting the market to be worth at least $18 billion by 2030, encompassing edge AI control systems for manufacturing equipment.Technical Barriers: Advanced packaging equipment (such as hybrid bonders, temporary bonding and debonding equipment) is monopolized by a few manufacturers like Japan's Disco and Tokyo Electron; the automation robotics field is highly customized, with the technical barrier lying in process integration with different wafer fabs (such as TSMC, Samsung, Intel).

Supply Chain Impact

• Affected Links in the Supply Chain:
• Upstream (Materials and Equipment): Suppliers of photoresists, specialty gases, and silicon wafers need to closely follow customer layouts. Taiwanese material companies (such as LCY and Chang Chun) face the choice of setting up factories in the US.
• Midstream (Manufacturing and Packaging): The expansion of wafer fabs by TSMC, Intel, and Samsung directly drives equipment procurement. The shift of advanced packaging capacity to the US will alleviate the current bottleneck in Asian packaging capacity, but may cause capacity redundancy across the strait in the short term.
• Downstream (System Integration and Data Centers): Supply shortages for electrical equipment (transformers, switchgear) will persist, benefiting US domestic electrical equipment manufacturers (such as Eaton and Schneider Electric).

Beneficiaries: US domestic equipment and automation suppliers (such as Applied Materials and Teradyne) and power infrastructure companies; Taiwanese small and medium-sized equipment manufacturers that can establish capacity in the US can shorten customer response times and gain geopolitical advantage.

Risk Parties: Taiwanese second-tier manufacturers that rely on single-region production; suppliers lacking funding or technical capabilities may be squeezed out of the supply chain.

Competitive Landscape

• Changes in Competitive Landscape:
• Packaging Sector: Taiwan's ASE (Advanced Semiconductor Engineering) and SPIL (Siliconware Precision Industries) have long dominated global advanced packaging. TSMC's Arizona packaging plant will directly form a tripartite balance with Korean (Samsung) and US (Intel) players. If Taiwanese small and medium packaging manufacturers cannot follow TSMC to the US, they may lose AI chip packaging orders.
• Automation Equipment: Japan's Fanuc and Yaskawa Electric dominate the industrial robot field, but new entrants like TechForce Robotics, leveraging close cooperation with wafer fabs, are expected to gain a share.
• AI Chip Design: NVIDIA, AMD, Broadcom, and others continue to drive demand for custom AI chips, forcing the supply chain to accelerate localization in the US.

Regional Implications- United States: Becomes the largest investment destination. CHIPS Act subsidies (with large funds expected to be disbursed before 2026), the driving effect of TSMC, and emerging bottlenecks in electricity and equipment will spur more localized production. - Taiwan: Faces risks of talent and capital outflows. However, Taiwan's experience in precision machinery and chemicals remains irreplaceable. Some companies adopt a "Taiwan R&D + US manufacturing" model to maintain advantages. - South Korea and China: Samsung has already built packaging plants in the US, while China, constrained by export controls, struggles to acquire advanced packaging equipment, potentially widening the gap. - Japan: Equipment and materials suppliers (e.g., Tokyo Electron, Shin-Etsu Chemical) benefit from global expansion but need to be wary of US customers' demands for localization.