Experts believe that Taiwan's heavy electrical industry still has two major advantages: non-red and replacing old with new ones. (File photo)
[Reporter Lin Jinghua/Reporting from Taipei] The U.S. midterm elections ended, but subsequent concerns about restrictions on AI data centers caused the global stock market to nearly collapse. Among them, Taiwan's heavy electrical industry is oriented toward U.S. exports, and its stock price also plummeted. However, experts believe that there is unlikely to be a major shift in U.S. policy in the short term. The overall strategic dominance is still concentrated in the hands of President Trump. Moreover, there will be no demand for heavy electricity due to the decline in the popularity of AI. The U.S. power grid infrastructure is still in urgent need of replacement, and Taiwan still has the advantage of non-red supply chains.
Unnamed experts analyze that the cooling of the AI craze may indeed bring data center investment scale, profit expectations, and chip iteration speed back to a more pragmatic level. In particular, the rapid update speed of AI chips also creates cost and investment burdens for enterprises. Future data center specifications and equipment update rhythms are worth observing. However, AI-related infrastructure will not be reset to zero. He said that the U.S. power grid is too old, the replacement of related equipment and the growth of power demand are still problems that the United States has to face.
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As for whether there will be a major shift in U.S. policy due to the election results, he believes that the chance is not high in the short term. The overall policy and strategic leadership is still concentrated in Trump's hands. Even if Congress may take countermeasures or response measures, it will not be easy to change the overall direction alone. However, policy risks have not completely disappeared, and it is still necessary to continue to observe subsequent political struggles and changes in AI industry investment.
On the other hand, the ability to go overseas has also become an important key for Taiwan's energy companies to diversify domestic market risks. Compared with players that focus on the domestic market, companies with the ability to expand across borders can adjust their business focus according to local market needs. Take transformers as an example. Although Taiwan's current queuing situation is not as severe as that of the United States, the demand for power equipment in the United States still brings export opportunities to Taiwanese factories. Taiwan can also rely on its non-red supply chain advantages to win orders from the international market.
Experts believe that Taiwan's energy industry still has opportunities in the U.S. power grid renewal, non-red supply chains, and overseas renewable energy markets, but the development speed and thresholds in different fields vary. Short-term stock market corrections reflect market doubts about the prospects of AI investment. In the long term, power grid upgrades and energy transformation remain global trends.
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