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Aug 17, 15:10
Record orders, yet profits squeezed: Asia-Pacific electronics supply chain caught in cost crunch

Global Electronics Association survey data show that demand across the global electronics manufacturing industry maintained steady expansion in the first half of 2026, with orders, shipments, and capacity utilization strengthening in most months. Capacity utilization, in particular, reached an all-time high since the survey began in June.

Taiwan Mobile said on August 12 that its board approved a tender offer for Systex Corporation common shares through its wholly owned subsidiary Taiwan Cellular, with the goal of lifting its stake to more than 50%. The telecom operator already held 11.86% of Systex, and the tender offer seeks an additional stake of at least 39%, which would lift Taiwan Mobile's total ownership above 50%.
Co-packaged optics (CPO) has become a major focus of the optical networking industry, but pluggable modules remain the mainstream choice for optical interconnects. At a silicon photonics forum during the 2026 OCP APAC Summit, panelists said vendors have little incentive to abandon a mature and proven pluggable ecosystem before technical or economic constraints make a shift necessary.
Taiwan's Sercomm Corporation is repositioning itself for the next phase of network infrastructure demand by expanding beyond traditional broadband equipment into 5G, fixed wireless access (FWA), enterprise networking and IoT connectivity, areas expected to benefit from rising data traffic and AI-driven digitalization.

Samsung Electronics will increase production of the Galaxy Z Fold8 by 1 million units in 2026 after strong preorder demand for its wider foldable phone, according to ET News. The move comes as the company prepares for a new round of competition in foldables ahead of Apple's first 4:3 foldable iPhone, which is expected in September 2026.

Taiwan's three major telecom operators — Chunghwa Telecom, Taiwan Mobile and Far EasTone Telecommunications — all reported strong July 2026 results, with revenue and profit supported by seasonal roaming demand, 5G upgrade plans and resilient handset sales. The operators said July marked a record period for several key metrics, while AI-related demand in enterprise and infrastructure businesses provided an additional growth driver.

Google has officially announced that it will unveil its annual Pixel 11 flagship smartphone series on August 13, 2026, with the lineup expected to include the Pixel 11, Pixel 11 Pro, Pixel 11 Pro XL, and Pixel 11 Pro Fold. As generative AI adoption accelerates and shortages and price increases hit key upstream smartphone components, investors and the market are closely watching how Google will use AI to boost sales and hardware momentum.

As supply chain turbulence is easing, network equipment makers are starting to report better revenues. Gemtek Technology and CyberTAN both saw year-over-year revenue growth turn positive in July. However, the memory price rally continues to cloud the outlook for the second half of the year, keeping customers cautious on costs and inventory management.
VisEra, the TSMC-affiliated optical components supplier, is expanding into AI optical interconnects and silicon photonics, with its MicroLens products for 800G pluggable transceivers already in mass production and its next-generation PIC thin-film processes for 1.6T products targeted to begin gradual volume production by the end of 2026. A high-density optical coupling platform is planned for mass production in the second half of 2027.

US technology controls are reaching deeper into communications supply chains. Under FCC 26-50, the Federal Communications Commission no longer focuses only on brands or final assembly. Its emerging framework now extends to chips, modules, software, firmware, design ownership, production location and supply-chain control, raising new compliance risks for optical transceivers, networking equipment and ODM suppliers.

LinkCom Manufacturing said its July revenue fell from a year earlier because tight supplies of memory, passive components, and other key parts pushed up prices and prompted some networking customers to adjust procurement and delivery schedules for large projects. The magnetic components maker said order intake and deliveries remained steady, and July sales still ranked as the second-highest for the same month in company history.
Highpoint Service Network approved its second-quarter 2026 financial report on August 5, posting record revenue for both the quarter and the first half as it expanded in the Asia-Pacific and launched operations in India. The Taiwan-based service provider reported consolidated revenue of NT$375 million, net profit after tax of NT$8.38 million, and earnings per share (EPS) of NT$0.46 for the quarter.