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Jan 22
EMS watch: Chinese EMS champions reshape their playbooks around AI hardware, autos, and global delivery
A cluster of China's leading electronics manufacturers and component suppliers is entering the new year with a clearer division of labor across the AI device wave, automotive electrification, and globalized manufacturing. Recent company filings, investor communications, and post‑autumn analyst commentary point to a common theme: growth is being pursued less through single-product cycles and more through platform capabilities—vertical integration, module-level design, and cross‑sector customer expansion—while capital market actions and overseas footprints are being positioned as strategic amplifiers.
The Tata Group will invest INR1 trillion (US$11 billion) to build a state-of-the-art Innovation City near Navi Mumbai International Airport, marking a key step in Maharashtra's plan to become a national hub for artificial intelligence, semiconductors, and Global Capability Centres (GCCs), according to ANI, Bloomberg, and Hindustan Times.
Taiwan's Qisda Corporation has announced a strategic investment of approximately NT$3.2 billion (US$101 million) to acquire a 35% stake in Eastech Holdings, a leading global manufacturer of audiovisual speaker systems. The move marks Qisda's entry into the high-value acoustic industry chain, aiming to enhance its audiovisual integration capabilities and strengthen its presence in smart manufacturing and high-end imaging markets.
AI startup Anthropic has secured enthusiastic investor participation in its latest financing round, Bloomberg reported, citing insiders. Originally targeting US$10 billion, the round is now oversubscribed, supported by major commitments from lead investors Singapore's GIC and Coatue Management, each pledging around US$1.5 billion, alongside Iconiq Capital's planned investment of at least US$1 billion. Additional backers include Lightspeed Venture Partners, Menlo Ventures, and Sequoia Capital.
Taiwan and the US have agreed to reduce tariffs and grant Taiwan most-favored-nation status under Section 232 for semiconductors and related products. However, a major issue has arisen regarding the financing for Taiwan's investment commitments. The US Fact Sheet cites Taiwan's credit guarantee financing as "at least" US$250 billion, while the official Memorandum of Understanding (MOU) between the two specifies an "upper limit" of US$250 billion. This inconsistency has led to questions about the exact nature of Taiwan's financial obligations and how they will be implemented in the future.
The European Commission presented a revision of the Cybersecurity Act that introduces a phase-out of "high-risk suppliers" from critical infrastructure, targeting China-based technology groups, specifically Huawei and ZTE. The revised framework reflects mounting concern in Brussels over cyberattacks, foreign interference, and the EU's reliance on non-European technology vendors in sensitive sectors. Cyber threats have been on the rise, with officials citing a rising number of ransomware, espionage, and infrastructure attacks as part of the rationale for stronger, coordinated action across member states.
At the Davos 2026, US President Donald Trump stated that he secured US$18 trillion in investment commitments within his first year back in office, significantly exceeding the US$1 trillion gained during former President Joe Biden's entire four-year term. Trump expects the figure to approach US$20 trillion soon.
James Yu, Palo Alto Networks' country manager in Taiwan, stated that while 2025 was predicted as the "disruptive year" for AI, 2026 will fundamentally reshape enterprise operations due to rapid growth in AI agents. This shift will trigger transformations across identity verification, security operation centers (SOC), quantum computing, and browsers.
Google's latest study reveals that enhancing artificial intelligence (AI) reasoning capabilities extends beyond increasing computational resources. Instead, the interaction and debate among multiple internal perspectives within large language models (LLMs) enable more effective problem-solving, suggesting new directions for AI design. The findings, published by the Google team, examined inference processes in China's DeepSeek, Alibaba's R1, and QwQ-32B models.
At Davos 2026, Microsoft CEO Satya Nadella cautioned that the rise of artificial intelligence (AI) could lead to a bubble if its advantages are limited primarily to technology companies while broader industries lag. His remarks come amid mixed results from AI investments across global businesses.
Pan-International Industrial has decisively moved into the humanoid robotics and high-performance motor market through a joint EUR32 million (US$37.24 million) investment with Foxconn Technology Group to acquire a 52% controlling stake in Belgian startup Magnax BV. This expansion marks Pan-International's strategic transition from traditional wiring harness manufacturing to a supplier of advanced critical components, positioning it at the forefront of next-generation power system technologies.
Taiwan's air cargo is on track to reach a record high by 2026, propelled by strong demand for AI servers and advanced semiconductors primarily exported to the US. According to Taiwan's Civil Aviation Administration, while flights from China and Hong Kong continue to lag due to lingering pandemic effects and policy restrictions, routes linking Taiwan with the Middle East and North America have recovered robustly, exceeding pre-pandemic levels.