The start of September arrives loaded with reports from investment banks and analysis firms pointing to the same phenomenon: the wave of demand for artificial intelligence is triggering a domino effect in the tech supply chain, with Taiwan at the epicenter and NVIDIA as the catalyst.
This time, the focus has been on four listed Taiwanese companies—Hon Hai Precision (2317), Accton Technology (2345), Chenbro Micom (2059), and Auras Technology (3017)—all key players in building servers, networking equipment, chassis, and cooling solutions for NVIDIA’s Blackwell systems. The background is an international brokerage report revising upward revenue and margin forecasts, along with an ambitious projection: NVIDIA’s Blackwell GB200 and GB300 systems could triple their shipments by Q3 2025 and reach up to 60,000 units in 2026.
Hon Hai (2317): the main beneficiary of the Blackwell effect
An Australian analysis firm has raised its valuation of Hon Hai, globally known as Foxconn, citing growth opportunities linked to the “Star Gate” data centers megaproject, in which it partners with TECO and SoftBank. The broker revised its profit per share (EPS) forecasts upward for 2025 and 2026 to 19.8 and 22.9 New Taiwan Dollars, respectively. Using a valuation multiple of 14x PER, the target price for the stock has also been improved.
The core assumptions of the report consider two scenarios:
- Base case: Hon Hai would achieve a 40% market share, equivalent to about 17,000 racks.
- Bull case: its share could rise to 70%, with around 30,000 racks shipped.
The immediate appeal is reinforced by estimates from a U.S. bank projecting a 300% sequential increase in Blackwell system shipments (GB200 and GB300) during Q3. In the medium term, forecasts mention 50,000 to 60,000 racks for 2026, a volume that would establish Foxconn as an essential OEM manufacturer for NVIDIA.
Accton Technology (2345): the rise of 800G switches
Accton, specializing in high-speed networking equipment and switches, has impressed positively in its Q3 results. Its accumulated revenue now accounts for 75% of what analysts predicted, exceeding expectations.
The main driver is 800G switches, whose growth in the second half of the year offsets the anticipated transition in AI acceleration modules during Q4. Investment banks have reaffirmed their positive ratings, highlighting that the company is positioned as one of the leading providers for large data centers requiring low-latency connections and extreme bandwidth to link GPUs.
Chenbro Micom (2059): stability and price improvement
Chenbro, a provider of server chassis and mechanical solutions, has met market expectations. Its third-quarter revenues now total 64% of what a U.S. firm forecasted.
The improvement is not only volume-driven: there’s also a pricing effect. With increased shipments of servers based on ASICs and GPUs, and a favorable exchange rate improving profitability, Chenbro sees its average selling price (ASP) rise. Analysts maintain a positive bias, confident that the company will benefit directly from the expanding AI infrastructure cycle.
Auras Technology (3017): record-high revenues
Auras, specializing in advanced cooling systems, posted a new revenue record in August. According to a U.S. bank, Q3 could close with even higher numbers.
The most anticipated product is the Microchannel lid, a key liquid cooling solution for high-density computing systems. Still in ODM design phase, it is expected to be finalized within the next 1-2 months. Capacity will be a challenge: to meet the explosion in demand, they will need to expand production lines, which might take some time. Nonetheless, the market remains confident in the strength of their business model.
NVIDIA Blackwell: the wave driving the entire supply chain
The main driver of these revisions is NVIDIA. After the Hopper architecture’s success, the company led by Jensen Huang has launched the Blackwell generation, comprising variants GB200, GB300, and Ultra.
- GB300: each system includes 72 Blackwell GPUs and 36 Arm processors, making it one of the most advanced AI infrastructures worldwide.
- Record ramp-up: just one quarter after starting production at the end of 2024, Blackwell generated $11 billion in revenue, the fastest ramp in the company’s history.
- Diversification: although created for generative AI, Blackwell has also bolstered divisions in gaming and professional visualization. In FY Q2 2025, the architecture contributed to a 17% sequential revenue growth.
A report from U.S. brokerages estimates that Blackwell system shipments will triple in Q3 2025 and could surpass 60,000 units in 2026. To give perspective: Microsoft alone is preparing an order of 1,500 GB200 racks in Q4.
Taiwan, a central piece in the AI race
The interesting aspect of this movement is how it consolidates Taiwan as the ecosystem’s epicenter. Foxconn serves as NVIDIA’s strategic partner assembling Blackwell racks. Accton provides 800G switches, Chenbro manufactures chassis, and Auras tackles thermal challenges.
Each company covers a different link, but collectively they form a supply chain that reinforces Taiwan’s role as an indispensable actor in the AI revolution. Simultaneously, it bolsters geopolitics: while the U.S. maintains export restrictions to China, Taiwanese and U.S. companies strengthen ties to secure access to critical infrastructure.
Challenges: capacity, costs, and competition
The outlook, however, isn’t just optimism. Several hurdles exist:
- Production capacity: Auras needs to expand its facilities to meet the demand for liquid cooling; Hon Hai must balance its role across multiple infrastructure projects.
- Costs: inflationary pressures and high chip and memory prices could erode margins.
- Competition: South Korea and China are accelerating investments in data center technologies and could gain market share from Taiwanese firms if they achieve vertical integration.
- NVIDIA dependency: much of the current boom is centered around Blackwell; any delay in the next architecture or in approval of sales in regulated markets could impact the supply chain.
Conclusion
September 8th sends a clear message: the race to lead AI infrastructure is unfolding with Taiwan and NVIDIA as protagonists. The island’s network of specialized manufacturers confirms its role as a vital cog in the new digital economy.
International investors are sharpening their calculations. They see Foxconn as the main beneficiary but keep an eye on Accton, Chenbro, and Auras, which are strengthening their roles across different niches in this value chain. Looking ahead, 2026 is marked by the promise—and challenge—of reaching 60,000 Blackwell systems in the market.
Frequently Asked Questions (FAQs)
1. What are NVIDIA Blackwell GB200 and GB300 systems?
They are next-generation AI compute infrastructures. For example, the GB300 integrates 72 Blackwell GPUs and 36 Arm processors, delivering unprecedented performance for AI model training and deployment.
2. Why is Foxconn (Hon Hai) key in this supply chain?
Because it’s one of NVIDIA’s main rack assembly partners. Its mass manufacturing expertise allows it to produce the systems at scale for major clients like Microsoft or Google.
3. What role does Accton play with its 800G switches?
Its networking equipment ensures that thousands of GPUs in data centers communicate with minimal latency and maximum bandwidth, essential for AI model training.
4. What risks does the Taiwanese supply chain face?
The main risks include insufficient manufacturing capacity, cost pressures, dependence on NVIDIA, and competition from South Korea or China seeking to develop proprietary solutions.
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via: wccftech