AI computing demand is increasing the need for thermal management. To optimize space efficiency in data centers, server cooling is shifting from traditional air cooling to liquid cooling, bringing a new wave of high-growth revenue opportunities for thermal solution companies. Leading Taiwanese thermal module makers Asia Vital Components (AVC) and Auras Technology's revenues jumped as they expanded from PCs and smartphones into server cooling. AVC also benefits from server components like enclosures and quick connectors, with year-over-year growth approaching triple digits.

German industrial giant Merck KGaA announced the appointment of Benjamin Hein as a member of the executive board and CEO of its electronics business unit, effective May 1, 2026. Following extensive global experience within the group, Hein will return to the electronics division from the company's headquarters in Germany.

Demand for smart glasses is climbing. Alongside established players such as Meta, Rokid, RayNeo, and Xreal, heavyweight brands including Samsung Electronics and Apple are preparing to enter the market, raising the stakes across the supply chain. In Taiwan's optical industry, several suppliers have emerged as focal points.

Taiwan-based National Aerospace Fasteners Corporation (Nafco) held a groundbreaking ceremony on January 30, 2025, for its second-phase expansion at its production base in Malaysia. Nafco stated that launching this expansion marks a significant milestone in the company's capacity growth and global manufacturing footprint.

Taiwan-based CviLux Corp announced on January 30, 2026, that, following a board resolution, it will publicly acquire up to 5,191,000 shares of Cystek Electronics, representing approximately 15% of its total issued shares. The public tender offer period runs from February 3, 2026, to March 10, 2026, and will proceed in accordance with relevant legal procedures.

Below are the most-read DIGITIMES stories from the week of January 16 – February 1, 2026.

India's finance ministry on February 1, 2026, unveiled the Union Budget for 2026–27, placing electronics and technology manufacturing at the heart of its growth strategy, with fresh funding for semiconductors, electronics components, and AI-linked infrastructure aimed at strengthening supply chains and boosting India's global manufacturing competitiveness.

Nvidia chief executive Jensen Huang, on February 1, 2026, underscored Taiwan's central role in the global artificial intelligence supply chain, saying the company "would not be possible without Taiwan," while warning that soaring AI demand is placing unprecedented pressure on semiconductor, memory, and manufacturing capacity worldwide.

After two decades, India and the EU close an FTA deal as US's tariff policy is disrupting the global supply chain.

Taiwan has taken a significant step forward in quantum computing development. On January 29, 2026, Academia Sinica—the island's premier national research institution—announced the successful development of a 20-qubit superconducting quantum computer, marking a major milestone in the global race for quantum supremacy.

Nvidia continues to dominate the global AI accelerator market. But its technological moat is increasingly being tested from three directions.