US Pours $2 Trillion into AI, but China Reaps the Benefits

Amid the United States’ grand ambitions to build dominance in artificial intelligence (AI), a surprising fact has emerged: China is reaping the rewards. Behind the colossal investment worth nearly US$2 trillion for constructing data centres, global supply chains reveal a direction not entirely controllable by Washington.

The latest report from Oxford Economics reveals that US data centre projects, valued at around US$2 trillion (Rp32 quadrillion), are largely absorbed into purchases of technology equipment, including semiconductors and servers. About three-quarters of the total costs flow into this sector, opening up major opportunities for technology-supplying countries.

This surge in investment is directly driving an increase in US electronics imports, which mostly originate from Asia and Mexico. Taiwan and South Korea are the primary winners, thanks to exports of advanced chips and memory that form the backbone of AI technology.

However, intriguingly, China also emerges as a beneficiary, albeit indirectly. Amid technology restrictions and the trade war with the US, China’s direct exports to America have indeed declined. But at the same time, China’s exports to other Asian countries have risen significantly.

This situation demonstrates that China remains tightly connected within Asia’s supply chains. Goods such as printed circuit boards (PCBs) and AI server components produced in China continue to flow into global markets via intermediary countries, before ultimately contributing to technology projects in the US.

Data shows that by 2025, the US will import more than six times the number of computers it produces domestically, as well as 2.6 times the assembled PCBs. This fact confirms the high dependence on global supply chains, particularly in Asia, as reported by the South China Morning Post.

Taiwan Semiconductor Manufacturing Company (TSMC) plays a central role as a producer of advanced chips for companies like Nvidia. Meanwhile, South Korea, Japan, and Singapore also support the ecosystem through the production of high-tech electronic components.