Factories in Taiwan, South Korea, China, Japan and Singapore are posting measurable gains from artificial intelligence, while the United States pours money into data centers hoping for a productivity boom around 2027. South Korea’s AI Factory initiative, deployed across 42 pilot sites, delivered average productivity gains of 30.1% and a 15.5% reduction in defects, while Foxconn’s Lighthouse Factory in Zhengzhou reported a 102% increase in production efficiency. Taiwan accounted for 30.7% of US semiconductor imports in August 2026, while capacity utilization at American fabs stood at 73.9%, well below the historical average of roughly 80%. Goldman Sachs expects US productivity gains from generative AI to emerge around 2027, while Asian economies are already seeing AI-linked improvements in labor productivity. Heavy reliance on imported advanced chips and low domestic fab utilization leave American AI ambitions tied to production capacity the country does not control.
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