AI servers strain Taiwan's power chip supply chain amid PC slump

Taiwan's power component suppliers are caught between two divergent market forces. AI infrastructure expansion is pushing up demand for critical power management chips needed to regulate and cool data center servers, creating supply pressure. At the same time, the PC market remains weak, denying suppliers the volume and pricing leverage they would normally use to absorb cost increases or fund capacity expansion. This mismatch—strong demand in one segment offset by weak demand in another—creates an asymmetry that constrains the supply chain. Suppliers cannot freely raise prices to reflect the tighter AI-driven demand when a large portion of their addressable market (PCs) is unable or unwilling to absorb price increases. The result is a potential bottleneck in power component availability unless PC demand recovers or suppliers accept margin compression to serve both markets.