Why Is the AI Revolution Rewriting the World From Silicon to Power Grids and Reshaping Global Capital?
Inside Taiwan examines a structural transformation reshaping the global economy. From advanced chip pricing at TSMC to the rise of AI agents and the rebuilding of physical infrastructure, this episode explains why AI is not just software innovation but an end to end reconstruction of the industrial stack.
Q: Why is TSMC at the center of the current AI transformation?
A: TSMC’s advanced 3nm and 5nm capacity is nearly fully booked. Reports indicate a series of price increases starting in 2026. This marks a shift from falling chip prices to a new phase where both volume and pricing rise together.
Q: What is driving TSMC’s new pricing power?
A: Demand from AI leaders like NVIDIA and AMD has exceeded supply. Access to advanced chips now determines who can compete in next generation AI development.
Q: What does a major earthquake reveal about the AI supply chain?
A: A 7.0 magnitude quake briefly halted fabrication but production resumed within hours. This highlights both Taiwan’s resilience and the global risk of concentrated semiconductor manufacturing.
Q: What is the electro industrial stack?
A: Coined by an a16z investor, it refers to the physical layer powering AI. Batteries, power electronics, motors, cooling systems, transmission infrastructure, and robotics that allow software to operate in the real world.
Q: Why are investors shifting away from power generation stocks?
A: Electricity alone is not the bottleneck. Transmission, cooling, backup power, and grid infrastructure are now the critical constraints in scaling AI.
Q: What talent bottleneck is emerging in Taiwan?
A: Government data shows a green jobs gap of nearly 30,000 roles. About 21 percent are in semiconductor and tech sectors requiring skills in carbon accounting and renewable energy integration.
Q: How is geopolitics complicating AI development?
A: While advanced chips face export restrictions, developers increasingly adopt lower cost open source AI models. Hardware can be controlled but software adoption remains fluid.
Q: What is NVIDIA’s long term advantage?
A: Since 2016, NVIDIA has improved AI energy efficiency by roughly 10,000 times. Its strategy focuses on flexible architectures that allow developers to explore new ideas rather than optimizing for a single model.
Q: What does this mean for individuals and organizations?
A: AI lowers the barrier to expertise. Everyone now has access to a personal tutor and execution partner, fundamentally changing how work, learning, and decision making scale.
The AI revolution is not a single breakthrough. It is a full stack reconstruction from silicon to software, from grids to talent. The winners will master the entire system, not just the algorithm.
Listen to the full episode of Inside Taiwan to understand how this transformation is unfolding in real time.