Xiaomi Corporation's second quarter showed a company being squeezed from both ends of its business at once: a surging memory-chip bill eating into its core smartphone margins, and its smart EV, AI, and other new initiatives segment still reporting a loss even as vehicle deliveries grow. Revenue for the three months ended June 30, 2026, fell 6.1% year-on-year to CNY108.92 billion (US$16.13 billion), and the company's preferred profitability gauge, adjusted net profit, nearly halved, down 42.6% to CNY6.22 billion — a far steeper decline than the top line, signaling that cost pressure, not just demand, is doing the damage.

As AI infrastructure increasingly absorbs both capital and management attention across China's technology sector, even profitable businesses are finding themselves vulnerable when they sit outside the strategic core.

Baidu's second-quarter 2026 results confirm a business in the midst of a wrenching handover: an AI-powered core that is scaling faster than almost any other line item at the company, while the total revenue base is still shrinking. Group revenue fell 4% year-on-year to CNY31.3 billion (US$4.63 billion), the fifth straight quarter of annual decline, even as Baidu's AI-powered businesses grew 25% and accounted for half of Baidu General Business revenue for the second consecutive quarter, exceeding legacy-business revenue.

More than half of Taiwanese companies surveyed by TAITRA reported being negatively affected by the US-Iran conflict, with rising costs emerging as the biggest concern as geopolitical tensions disrupt energy, raw material, and supply chain conditions.

TBI Motion Technology returned to profit in the second quarter of 2026, with strong demand extending order visibility into 2027. The Taiwan-based transmission component maker is also expanding into humanoid robotics and will showcase a lower-limb module at an automation exhibition this week.

Ethernet chipmaker IC Plus said on August 17 that its operations in 2026 have improved significantly after Airoha Technology took a stake and joined its management, while resources from MediaTek also provided substantial support. The company said it turned profitable in the first half of the year.

Amber Enterprises India's planned entry into smartphone manufacturing could mark a further step in India's effort to move beyond final assembly and build domestic capabilities in electronic components and materials.

Pan-International, a Foxconn Group connector and component maker, held an investor conference on August 18, 2026, to report its operating results for the second quarter of 2026 and outline its plans for the second half of the year and 2027. General manager Ming-Feng Tsai said the company's AI server products had entered the pilot production stage and were expected to begin ramping up shipments in October. Along with the gradual rollout of its axial flux motor (AFM) technology, the two growth engines would keep full-year 2026 revenue on track for double-digit growth from 2025. Looking ahead to 2027, as the two new businesses fully launch and additional contributions come from key AI server components, revenue could see explosive growth.