London Metal Exchange (LME) aluminum prices hit a four-year high of US$3,500 per ton, driven by Middle East conflicts and supply gaps. This trend, coupled with a 50% US national security tariff, creates a dual crisis for Taiwanese manufacturers exporting to America.
As AI server shipments rise, heavy reliance on aluminum alloys for cooling systems and chassis pressures profits at contract manufacturers such as Foxconn and Quanta. Engineers explained that aluminum’s specific thermal capacity makes it irreplaceable.
Besides, new EU carbon regulations require strict emission data. Therefore, Taiwanese firms are suggested to pivot to low-carbon suppliers in Australia and Canada to secure diverse supply chains and survive these geopolitical trade barriers.