US enforcement of foreign entities of concern, or FEOC, rules and a revised non-semiconductor Section 232 tariff preference have prompted a global shift in auto supply chains toward Taiwan, industry participants said, and the benefits are expected to flow through in 2026 and 2027. Executives and spokespeople described accelerating separation from China and a reorientation of orders to Taiwan as the US limits China-linked suppliers and seeks non-red, non-Russia sourcing across automotive electronics and parts.

Taiwan's economy has become one of the most closely watched in the world, riding a surge in global demand for semiconductors and advanced AI servers that have powered exports and private investment to new highs. But that prosperity has a sharp edge. Much of the growth has been concentrated in the technology sector and among wealthier households, while traditional industries, small businesses, and lower-income workers have seen far more limited gains.

AUO said its automotive business has entered a high-growth phase, with annual orders for in-vehicle products now exceeding current-year revenue. The company expects revenue benefits from orders secured over the past two years to begin in the second half of 2026 or 2027, supporting growth at AUO Mobility Solutions.

In aerodynamics, the Aito M9 underwent more than 100 engineering refinements, achieving a drag coefficient of just 0.249 Cd — among the lowest ever recorded for a full-size sport utility vehicle.

Xpeng Motors, often described as "China's Tesla," is advancing on two very different international fronts — cautious and measured in South Korea, but increasingly strategic in Europe — while competing Chinese EV peers such as Zeekr accelerate their own overseas expansion.

Samsung Electronics and SK Hynix dominate the global memory chip market, but their weaker position in automotive memory is drawing new scrutiny as AI data centers absorb more DRAM and NAND supply.

Copper clad laminate (CCL) maker Iteq held its 2026 annual general meeting on Thursday, with Chairman Dennis Chen saying that the continued deepening of generative AI applications, faster cloud computing and data center expansion, and steady growth in demand from new energy-related industries are boosting demand for high-end electronic materials and high-frequency, high-speed printed circuit board (PCB) markets.

Sino-American Silicon Products (SAS) held its shareholders meeting on May 26 and completed a full board overhaul, with founder Mingguang Lu stepping down as a director and Hsiu-lan Hsu being re-elected chairwoman. Lu will continue supporting the group as honorary chairman as SAS deepens its generational transition and diversified growth strategy.

Tsang Yow, a major drivetrain manufacturer, expanded into high-end semiconductor equipment and planned a Malaysia production ramp-up in the fourth quarter of 2026 after posting 2025 consolidated revenue of NT$10.5 billion (US$334 million), up 0.3% year on year, with gross margin rising to 33% and net profit attributable to the parent company of NT$140 million. Earnings per share were NT$1.36, and executives said product-mix optimization, equipment replacement, inventory reduction, and tighter cost control drove the margin improvement.

Dreame Technology, a Chinese consumer electronics maker, has formed nearly 1,000 affiliated companies in its ecosystem since the end of 2024. This breakneck pace of expansion signals the ambitions of its leadership to unearth growth opportunities across the broader Chinese tech sector, although some media outlets question the sustainability of the business model.