Taiwan's server makers are moving more factory work abroad, but the most valuable parts of the business are staying home — good news for Taiwan's chip economy and for AI supply chains generally.

• Taiwanese companies are building more servers in the U.S., Mexico and Southeast Asia because customers want machines made locally.
• The high-value work — GPU boards, design and prototyping of new products — stays in Taiwan, because TSMC and the chip supply chain are there.
• Final assembly of servers and racks is the part going overseas, since shipping finished racks out of Taiwan makes little sense.
• Global server shipments are expected to grow again in 2027, with AI servers growing fastest, as cloud companies keep spending on AI.
• Over time even board-level work could shift as Vietnam, Thailand and Mexico get cheaper and more capable.

Outlook: Taiwan's share of physical output will shrink, but the value of what it makes should keep rising as AI demand grows.