The global power equipment supply chain is facing a transformer shortage due to the unrelenting AI data center construction and demand for renewable energy. Delivery times for key equipment have been significantly extended, with some large transformers requiring as long as 24 months. This not only tests grid resilience but also creates challenges for major tech firms urgently seeking new power capacity.

he Malaysian government announced that companies engaged in midstream and downstream production of rare earth elements (REE) are eligible for related incentive policies. According to reports from Bernama and Nanyang Siang Pau, the Ministry of Investment, Trade and Industry (MITI) stated that under the 1986 Promotion of Investments Act, these REE midstream and downstream operators can apply for Pioneer Status, which grants tax exemptions on investments.

French artificial intelligence startup Mistral AI has launched two new open-source models and a command-line interface tool designed for software developers, expanding its focus beyond general language models. The offerings include the Devstral 2 series models, Devstral Small 2, and the Mistral Vibe CLI tool, aimed at the growing vibe coding market.

Advantech is accelerating deployment of its end-to-end intelligent transportation system (ITS) platform as global demand for smart traffic infrastructure rises. The company has expanded its footprint across South Korea through projects in Busan, Jeju, Incheon, Gwangju, Anyang, and Daegu, delivering systems for pedestrian–vehicle coordination, school zone safety alerts, and intersection conflict detection.

The Executive Yuan in Taiwan has proposed a NT$1.25 trillion (US$40 billion) special defense budget aimed at enhancing seven critical areas, including air defense, electronic warfare, and cybersecurity. A central focus of the "Taiwan Shield" initiative is to develop a multi-layered air defense system spanning high, medium, and low altitudes to improve national security.

Meta Platforms is reportedly delaying the release of its next-generation artificial intelligence (AI) model, Avocado, to the first quarter of 2026, according to sources cited by CNBC. The move accompanies a strategic shift from open-source to closed-source AI development and a major restructuring of Meta's AI division.

Chinese artificial intelligence startup DeepSeek is under scrutiny for allegedly circumventing US export restrictions by illegally acquiring thousands of Nvidia's Blackwell architecture GPUs. Nvidia acknowledged the situation but said it had no concrete evidence and would investigate all available leads.

Asia-Pacific enterprises are rapidly advancing AI adoption, with investments expected to grow from nearly US$90 billion in 2025 to US$176 billion by 2028, primarily focused on building agentic AI systems. On December 9, UiPath outlined six key AI agent development trends for 2026 in Taiwan, emphasizing the country's leadership in the manufacturing and finance sectors as a model for global AI governance, deployment, and advancement.

Rugged industrial PC (IPC) manufacturers are shifting their focus to drones, with ground control stations (GCS) serving as the primary entry point. Industry players note that since the Russia-Ukraine war, drones have become a decisive weapon on modern battlefields. Compared to the drones themselves, GCS devices share similarities with existing rugged tablet product lines, positioning 2026 as a key year for shipment growth.

The game console supply chain is increasingly diversifying manufacturing away from China amid ongoing US tariffs and geopolitical tensions. Key suppliers Foxconn and Luxshare have recently filed factory applications in Bac Ninh, Vietnam, aiming to expand production capacity outside China and reduce tariff exposure for major clients like Sony and Microsoft.