A rapidly growing AI sector represents a major demand driver for steelmakers in the Philippines and Taiwan, industry participants said May 19 at the 2026 South East Asia Iron and Steel Institute Conference and Exhibition in Singapore.
The Philippines and Taiwan are both semiconductor hubs, and their steel sectors will play a crucial role in fueling the AI rush, which has sparked a surge in data center construction, semiconductor production, and the buildout of ancillary facilities.
“All AI projects need infrastructure, which requires steel,” Geraldine Santos, public relations officer of the Philippine Iron and Steel Institute, told Platts, part of S&P Global Energy.
“AI projects are not just virtual, you will need infrastructure to develop them,” Santos said.
The US-led Pax Silica supply chain initiative is expected to spur AI investments in the Philippines. Under the framework, the US plans to build a 4,000-acre industrial hub in the country to secure US supply chains for AI, semiconductors and critical minerals.
“What really makes Pax Silica especially important for the industrial and steel sectors is its targeted focus,” Santos said. “Ultimately, Pax Silica reflects a broad direction of the Philippine economy moving towards high-value industries, stronger industrialization and deeper integration into the global manufacturing efforts.”
Producing specialty steel for AI and other high-tech applications is also key for Taiwanese steelmakers to remain competitive amid the influx of Chinese steel in the market, according to Victor Chen, general manager of marketing at China Steel Corp. (Taiwan).
“Unless you can produce steel products as effectively or as cheap as [those produced by] Chinese manufacturers, I think we all have to find a way to be differentiated in our products,” Chen said. “Now we’re talking about robots and all these new high-tech [products] that require more special steel.”
The production ramp-up of Taiwan Semiconductor Manufacturing Co. Ltd., one of the world’s largest semiconductor manufacturers, bodes well for Taiwanese steelmakers, Chen said.
Platts, part of S&P Global Energy, assessed SAE1006 grade hot-rolled coil at $580/metric ton CFR Southeast Asia May 19, down $5/mt day over day and a $9/mt decrease from the previous week.
