Taiwan's tech hardware companies are in good financial shape thanks to the global AI building boom, which is good news for investors in TSMC, Foxconn, Delta and their peers.

• AI infrastructure has replaced PCs and phones as the biggest source of revenue for Taiwan's tech companies.
• Taiwan firms dominate the key parts: over 90% share in advanced chipmaking and AI servers, and 30–60% in power, cooling and chip substrates.
• Spending by the five biggest cloud providers is expected to drive growth through 2027.
• Companies are borrowing little and keeping cash flow steady, so debt levels stay low compared with rivals in Asia and North America.
• Even in a stress test where AI revenue halves and profit margins drop sharply, earnings would hold near 2025 levels.

Outlook: Credit ratings for Taiwan's tech sector look safe for now, with enough cushion to absorb a slowdown in AI spending.