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Tuesday 21 July 2026
Electronics Supply Chain Outlook: Where H2 2026 Momentum Is Heading
Six months into 2026, the story isn't whether the electronics supply chain has stabilized. It has, broadly. The real story is that it has split into two distinct markets moving in opposite directions, and most procurement teams are still planning as if there's just one. The AI-driven leading edge remains capacity-constrained and pricing-positive, while the mature-node segment is loosening into a genuine buyer's market. Knowing which side of that line each line item on your BOM sits on is the single most useful thing you can do heading into the second half of the year.The Two-Speed Market, BrieflyTSMC is reportedly preparing to raise prices 3–10% on its sub-5nm offerings, and with Nvidia and Apple having already locked in large blocks of capacity through year-end, second-tier buyers are increasingly competing for allocation that may not exist in H2. Memory tells a similar story. Combined output from Samsung, SK Hynix, and Micron is expected to grow sharply by 2030, led by a projected rise in HBM production, but that new capacity doesn't meaningfully arrive until 2027. In the meantime, DRAM and HBM remain the tightest categories in the entire component ecosystem.Mature-node wafer pricing has actually returned to pre-pandemic levels, down 5–8% year-over-year, as Chinese fab capacity comes online and automotive/industrial utilization climbs into the 80–85% range. Consumer electronics demand is stabilizing too, which is easing pressure on mature-node semiconductors and passives.What This Actually Means for Your Procurement StrategyThis is where most H2 outlooks stop short. Here's what to actually do with this picture, category by category.1. Segment your BOM by risk profile, not just by part number.Advanced logic tied to AI-adjacent applications faces a fundamentally different supply reality than commodity discrete or mature-node passives. Treat these as two separate procurement strategies, not one blended approach. A BOM review that groups parts by constrained, stable, or loosening rather than by function or supplier will surface where your actual exposure sits, and it's often not where teams assume.2. Use the mature-node buyer's market now, not later.If you were forced into single-sourcing during the 2021–2023 shortage years, H2 2026 is the window to qualify second sources for those mature-node components while pricing and availability both favor you. This window won't stay open indefinitely. As automotive and industrial utilization keeps climbing toward capacity, the leverage shifts back to suppliers.3. Be strategic, not reactive, on memory buys.Memory is not one uniform story. Leading-edge densities tied to HBM demand carry a real price premium, but previous-generation DDR4 and LPDDR4 may still offer value while pricing is structurally supported mainly at the high end. If your designs can tolerate a prior-generation module, this is the year to lock it in rather than wait and hope for relief that isn't coming until 2027.4. Watch for new procurement categories forming in real time.Optical networking components for AI data centres are moving from niche to mainstream as AI clusters push toward much higher bandwidth per rack. If your roadmap touches high-bandwidth AI infrastructure at all, get ahead of this now. Procurement categories that don't exist yet in your sourcing playbook have a way of becoming urgent overnight once a design win locks them in.5. Rebuild safety stock around true risk, not blanket buffers.Broadly increasing inventory across the board is expensive and imprecise. The more effective move is targeting buffers at the small percentage of components, often a single connector, capacitor, or legacy memory module, that actually drive downtime risk if they disappear. Combine that with forecasting discipline: suppliers increasingly prioritize allocation and pricing based on how credible and consistent your rolling forecasts are, which means forecast accuracy is now a negotiating asset, not just a planning exercise.6. Don't sleep on non-obvious demand drivers.Rising defense spending across Asia-Pacific is quietly adding a new, non-cyclical source of demand for industrial and mature-node electronics, one that doesn't show up in most consumer-electronics-driven forecasts. If your end markets touch defense, aerospace, or industrial automation, factor this in as upside demand pressure, not background noise.The Bottom Line for the Rest of 2026H2 2026 doesn't call for a single supply chain strategy. It calls for two, running in parallel. Where you're constrained, the priorities are allocation planning, forecast credibility, and locking in what capacity you can. Where you're not, the priority is using the current leverage to diversify, qualify alternates, and rebuild resilience before the window closes. Teams that treat this as one undifferentiated “stabilizing market” will miss both opportunities.If you're navigating either side of this, securing allocation on constrained parts or taking advantage of loosening mature-node availability, that's exactly the kind of sourcing challenge our team works through with customers every day. Reach out to your Fusion Worldwide representative and let's talk through your BOM.(Article Sponsored by Howard Tan, Director of Purchasing, China Fusion Worldwide)
Tuesday 21 July 2026
Driving Global Intelligence: Best AI Awards 2026 Wraps Up
The Ministry of Economic Affairs officialized the successful conclusion of the second annual Best AI Awards, held at the Taipei Nangang Exhibition Center Hall 2. This year's event witnessed an extraordinary surge in international engagement, drawing 1,487 competing teams from 36 countries across the globe, which represents a near two-fold growth in foreign participation compared to the inaugural edition. Out of 253 finalist teams, 100 awards were presented to recognize exceptional breakthroughs in artificial intelligence technology and integration.Leading Innovators Secure Top Honors Across Key Industry VerticalsThe competition highlighted highly competitive solutions spanning healthcare, information and communications technology, manufacturing, and education. Eight prestigious gold medals were awarded to outstanding organizations and academic institutions, including Delta Electronics, Kneron, BrainNavi Biotechnology, ZenTech, National Cheng Kung University, and National Formosa University, alongside pioneering international teams from Thailand and Poland. These entries showcased the practical implementation of artificial intelligence, bridging advanced research with market-ready products.Minister of Economic Affairs Kung Ming-hsin. Credit: TCAMinister Highlights Shift From Hardware Dominance to Practical Industry DeploymentDuring the ceremony, Minister of Economic Affairs Kung Ming-hsin emphasized that while Taiwan maintains a critical global advantage in foundational AI hardware such as semiconductors and servers, the next vital phase involves translating this power into practical applications across all sectors. Under the framework of the government's new major AI infrastructure initiatives, the ministry has established over 50 trial production sites with automated AI capabilities and developed models covering 23 core industries. More than 1,000 consultants have been deployed across the nation to actively assist over 2,600 enterprises in integrating artificial intelligence into their daily operations.Emerging Tech Trends Shape the Future of Edge and Agentic IntelligenceThe second edition successfully guided industrial investments toward the frontier developments of Agentic AI and Edge AI, shifting artificial intelligence from a passive responsive tool to an autonomous partner capable of independent judgment. Driven by strong local integrated circuit design capabilities, more than 430 projects focused on lightweight AI architectures to enable real-time processing directly within terminal devices and industrial machinery. Furthermore, 590 teams integrated open-source environments like GitHub and registered on Crunchbase, significantly elevating the international visibility of the technological ecosystem.Extended Business Matchmaking Initiatives Showcase Commercial Achievements at COMPUTEXTo foster substantial commercial partnerships, organizers featured a dedicated industry matchmaking zone during the finals to link venture capital with startup resources. This promotional effort extended into the COMPUTEX exhibition period, where exclusive matchmaking sessions successfully showcased the winning projects to connect the teams with international buyers and global investors. The Ministry of Economic Affairs plans to continue opening institutional pilot lines to support design verification, prototyping, and unified system integrations, ensuring businesses can seamlessly implement artificial intelligence without developing systems from scratch.The Best AI Awards celebrate global excellence in artificial intelligence and IC design, welcoming submissions from innovative companies and brilliant student teams. Following the success of the 2026 edition—advised by the MOEA, organized by DoIT, and executed by TCA—the prestigious competition is officially transitioning into an annual tradition.Offering substantial grand prizes and unmatched industry exposure, the countdown to Best AI Awards 2027 has already begun. Details on the next submission cycle, prize tiers, and eligibility rules will be released soon. Connect with on LinkedIn for the latest official updates and application alerts. Group Photo of the Best AI Awards 2026 Winners. Credit: TCA
Tuesday 21 July 2026
AIYO: An AI tool that designs chips to user specifications
The Best AI awards were given out in two categories: artificial intelligence (AI) applications and integrated circuit (IC) design. AIYO was entered in the IC design category, but their concept – AI-powered acceleration of IC design – really straddles the two categories.Chip design is a long, arduous process. Today's chips contain billions of transistors, and designers not only have to design them to do what they want them to do, but have to ensure that the design satisfies a large number of rules and can actually be physically produced in a foundry. Since 2010, the number of transistors and gates has increased by nearly a hundredfold, but engineering productivity (as measured by the number of gates that a chip designer can design in a day) has increased by only about three times. This 29-times gap is set to widen even further over the next few years. In other words, it takes chip engineers more time than ever before to do their job.The problem lies not solely in the number of components on a chip but in the complexity in how they interact. The demand for custom silicon – ICs specially designed and optimised for specific applications or customers – and the sheer number of use cases now being designed for is growing, but it is getting harder and harder to find the engineering talent for custom silicon. Specialised silicon requires specialised talent.Tier-one design houses, like NVIDIA or MediaTek, can still find talent, but it's a different story for tier-two companies. Chip design is increasingly a bottleneck for technology companies to implement their AI-powered (and non-AI-powered) solutions.AIYO thinks that AI can help with that. It aims to reduce the gap between tier one and tier two companies, without completely replacing human design and the need for engineers. Engineers use natural language to provide their design specifications, including the constraints and requirements that the chip must satisfy. AIYO's AI agent then generates Verilog, which is a piece of code that describes the design of digital circuits.This Verilog must satisfy the specifications that the user set out. AIYO's agent can also optimise it along various metrics, such as for a lower power consumption, a higher performance (in other words, how fast the chip operates, as measured by its clock speed or data throughput), or a smaller area (PPA) are the most commonly invoked. Different chips prioritise these three factors (collectively known as PPA) differently, but AIYO can trade off, for example, a lower performance for a lower area and less power consumption.AIYO's agent then performs a closed-loop verification of the design to ensure that it is feasible. The agent reviews the error logs and iterates the design until the design passes all tests. Then – at least theoretically – the design is ready for tape-out, or actual production of the circuit at the foundry. Tape-out is an expensive process, costing in the millions of dollars, so it is essential that the finalised design performs as expected.AIYO uses RISC-V, an open-source instruction set architecture (ISAs) that has grown exponentially in popularity since its introduction in 2014; it has already been used in more than 20 billion cores. This avoids the need to pay a licensing fee to the more common (but not open-source) ISAs in use today, such as ARM or x86.The performance of IC-design agents can be measured using a standard set of test problems. Can the agent solve the problems (i.e., design a suitable IC) on the first pass? And can it solve a different set of IC design problems eventually, after however many iterations? AIYO performs at the head of the pack in both models, a little bit ahead of NVIDIA's VerilogCoder agent and far ahead of ChatGPT, DeepSeek, and Claude. One to two engineers are now required to design a chip, where three to five would have been needed before. Furthermore, it now takes these one or two engineers two months to design a chip (and they can test multiple designs simultaneously), whilst those three to five engineers in a traditional design house would have needed six months. This is an improvement in efficiency of roughly an order of magnitude.AIYO is still a work in progress, and humans are needed to check for any mistakes the engine might make – human engineers' jobs are safe, at least for now. But AIYO does makes it possible to compress the iteration cycle and for even tier-two chip design companies to realise their designs with limited human resources.One of AIYO's most pressing next steps is expanding its customer base – not only for commercial reasons, but also because this will expand their training data and thus improve their AI engine. AIYO currently has one customer who needs help designing custom FPGA (field-programmable gate array) integrated circuits. AI is, by default, a generalist, and its large language models can fail when faced with very specific use cases that it has yet to see. Helping this customer with its specific use cases can help the AI engine gain specialist skills, and the more customers that AIYO can obtain, the more versatile the tool will be.To this end, the team is expanding the set of design problems. A large set of open-source IC design problems already exists, but AIYO is also working on building their own set of synthetic design problems.The money from the Best AI Awards is great, says Ballard, but realistically, it is not even enough for one year's access to a top EDA (electronic design automation) tool – training AI models is expensive. He says that the biggest benefit from the awards is the people it has allowed them to meet, and in particular, the conversations they've been able to have. "They'll ask, 'Did you consider X, Y, and Z?' Sometimes yes, we have, but sometimes, we have an action item for the future."This also gives them an opportunity to enter talks with various venture capital investors and potential Taiwanese partners. AIYO is currently working with funding provided by the co-founders themselves, but they're hoping to find a Taiwanese venture capital investor in the next few months.Tang-Hung Po and Austin Ballard have been working on AIYO for only roughly a year. Po, originally from Taiwan and now based back in the country, obtained his master's in electrical engineering and computer science from the University of Michigan; he is the company's primary engineering lead. He brings more than 20 years of experience in SoCs (systems on a chip) and ASICs (application-specific integrated circuits) to AIYO, and was previously a director and a chief technical officer at other companies.Ballard, an American based in Seattle but with a Taiwanese mother, brings his experience scaling operations at Meta, Amazon and TikTok to now handle anything at AIYO not related to engineering,  The time difference allows them to collaborate during Ballard's evenings and Po's mornings, and their almost diametrically opposite locations, along with their different skill sets, facilitates engagement with all sorts of partners on both sides of the world. (As a side benefit, Ballard now has a business reason to visit Taiwan!)The Best AI Awards celebrate global excellence in artificial intelligence and IC design, welcoming submissions from innovative companies and brilliant student teams. Following the success of the 2026 edition—advised by the MOEA, organized by DoIT, and executed by TCA—the prestigious competition is officially transitioning into an annual tradition.Offering substantial grand prizes and unmatched industry exposure, the countdown to Best AI Awards 2027 has already begun. Details on the next submission cycle, prize tiers, and eligibility rules will be released soon. Connect with us on LinkedIn for the latest official updates and application alerts.