Taiwan to remain dominant in chip production for years, but AI rollout may reshape global capacity: Ofcom CEO

By Kaushal Verma
New Delhi [India], February 19 (ANI): Taiwan will continue to be the dominant hub for global chip production for many years, but the rapid rollout of artificial intelligence will drive major industrial shifts and require new manufacturing capacity worldwide, Ofcom CEO Melanie Dawes said today.
"It was just interesting to hear that about Taiwan remaining the dominant place for chip production for many years to come," Dawes told ANI exclusively on the sidelines of the AI Impact Summit in New Delhi, adding that "but we're going to see a huge amount of change as AI rolls out. We're going to see new industries develop, and new capacity will need to be built everywhere."
Taiwan is the leading force in global semiconductor manufacturing, accounting for more than 60% of worldwide chip production and over 90% of the most advanced, cutting-edge semiconductors as of 2026.
India has also stepped up efforts to manufacture indigenous semiconductor chips under the India Semiconductor Mission (ISM).
During the same event, which was based on the theme of Diffusing AI: Human Capital, Infrastructure and Trust.
Nikesh Arora, CEO, Palo Alto Networks, said, "No country can build chips with the pace and efficiency the way Taiwan is building. They have built multi billion dollar industry on it."
Dawes also told ANI that the scale of the Indian market is "enormous" and expressed confidence that India would play "a very big part in the future of AI and applying it for human good."
On telecom regulation, Dawes said she had earlier in the week discussed regulatory frameworks with Indian counterparts and also held a conversation with Bharti Airtel to understand the Indian context. "I think there are some similarities, but there are also some differences," she said.
"In India you've moved much more quickly to mobile, and that raises different kinds of questions to some of those we face in Britain, where it's more about rolling out fibre to every home," she added.
Dawes said both countries had discussed "the importance of competition" and "whether you can have competition in a more consolidated market, how you create that, whether it's about the number of companies."
She also spoke about the volume of online content available to consumers. "There's just so much to look at, so much to watch, to listen to, to read -- it can be bewildering," she said, adding that in the UK there remains strong belief in public service media that provides "balanced, impartial news."
Referring to the UK-India Free Trade Agreement, Dawes said, "The UK and India have always had a strong partnership, and we've just struck a trade deal together, which is fantastic," adding that she would return with "lots of opportunities to follow up" with counterparts in India.
Speaking about the wider AI debate in Delhi, Dawes described it as "such a privilege" to come from the UK and "immerse" herself in the Indian conversation. "I just find Delhi so full of energy, so full of a sense of hope and optimism and innovation, it's very exciting," she said. (ANI)