en.Wedoany.com Reported - Chunghwa Telecom highlighted AI infrastructure as the core of its growth strategy during its second-quarter earnings call: the AI data center in Taoyuan has commenced operations, with additional AI data center projects underway. The company also disclosed that ICT business revenue grew 32% year-over-year in the quarter.
Chunghwa Telecom stated that its new AI data center in Lunping, Taoyuan, officially began operations in the second quarter, and upon full completion, it will add up to 36MW to total IDC (Internet Data Center) capacity. In July, the company signed a memorandum of understanding with the Taiwan Stock Exchange to provide dedicated colocation capacity within its second AI data center, currently under construction in Taichung.
Chunghwa Telecom President Lung Shih-Lin said during the earnings call that these developments demonstrate the company's ability to convert AI infrastructure investments into long-term financial returns. The company is positioning itself as a regional "Three A's hub for the AI era," leveraging distributed AI data centers, IOWN optical networks, and land, sea, and air communications infrastructure.
In June, Chunghwa Telecom established the IOWN AI Fund together with global partners. Management stated that the fund aims both to build the IOWN ecosystem and to create new business opportunities through technology investments.
Several subsidiaries are advancing expansion in parallel under the same AI strategy. In the second quarter, Chunghwa Telecom Precision Test began construction of a new plant to support AI semiconductor testing demand, while Chunghwa Leading Photonics Tech began trading on Taiwan's emerging stock exchange.
In terms of performance, ICT revenue grew 32% year-over-year in the quarter, recurring ICT revenue rose 9%, and major business lines including IDC, cybersecurity, and international public cloud services maintained growth momentum. ICT order volume grew 30% year-over-year in the second quarter, and the total value of ICT contracts secured in the first half of 2026 has already matched the full-year total for 2025. Key contracts this quarter include large-scale AIDC projects, expected to further boost AI-related revenue, as well as a flagship Taipower energy storage project and multiple smart surveillance deployments.
On the international front, overseas subsidiary revenue grew 242% year-over-year, driven primarily by the delivery of large-scale ICT projects in the United States and Southeast Asia. U.S. market revenue achieved year-over-year growth, showing strong growth, mainly from the delivery of a large-scale AI supply chain project in Texas; Southeast Asia market revenue doubled, driven by ongoing projects in Singapore and Vietnam. The company added that it has since secured additional ICT projects in the U.S., Singapore, and Thailand, providing visibility for future growth.
Looking ahead, Lung believes that with sustained growth in AI-driven data traffic and rising international connectivity demand amid geopolitical uncertainties, Chunghwa Telecom is well-positioned to capitalize on these opportunities through its continued investments in submarine cable and satellite projects.
