Morgan Stanley has highlighted seven Taiwanese companies poised to benefit from Amazon's recent launch of its Trainium 2 AI chip, which aims to reduce reliance on Nvidia's hardware. The identified firms include Wiwynn, Hon Hai, Gold Circuit Electronics, Accton, King Slide, Asia Vital Components, and Delta Electronics. These companies are expected to gain from the anticipated demand for AI chips, as AWS promotes Trainium 2 as a cost-effective alternative, offering up to 40% better price-to-performance compared to Nvidia's latest offerings.

The Trainium 2 chip is part of Amazon's broader strategy to enhance its cloud computing services and compete more effectively in the AI hardware market, which has been dominated by Nvidia. With the AI chip market projected to exceed $100 billion, Amazon's move could significantly alter the competitive landscape. The collaboration with Taiwanese firms for manufacturing and assembly could also strengthen supply chain dynamics in the region, especially as Taiwan ramps up its AI investments, aiming for NT$230 billion in 2024.