Taiwanese IC design companies made a strong showing at Computex 2025, using the global stage to spotlight cutting-edge technologies developed for AI applications. While tech giants like MediaTek and Realtek brought their entire product portfolios to the event, a wave of small and mid-sized firms—including Elan Microelectronics, FocalTech, Etron, Microip, and the Egis Technology Group—are showcasing targeted innovations that signal the island's growing AI ambitions.
MediaTek and Realtek, undeterred by the computer-focused theme of Computex, are demonstrating solutions that span smartphones, IoT, automotive, and AI chips, highlighting the convergence of computing and connectivity. Smaller players, meanwhile, are zeroing in on more specialized verticals, such as touch functionality in AI-powered PCs and visual recognition technologies for next-generation AI applications.
Touch interfaces emerge as AI PC differentiator
Among the standout trends is the rise of touch interfaces in AI PCs. Elan and FocalTech, two of Taiwan's leaders in touch and display driver ICs (DDIs), are presenting advanced multi-touch capabilities designed for the AI PC era. Their demonstrations hint at a future where touchscreens—and stylus input—are integral to how users interact with computers.
Stylus pens, once the domain of tablets and creative workstations, are now being envisioned for simultaneous use across trackpads and displays. This dual-interface design is expected to accommodate emerging human-AI interaction models, as AI PC systems evolve to support more intuitive and multimodal workflows.
Touch and handwriting input offer richer, more flexible user experiences compared to traditional keyboard input. These capabilities expand the use cases for PCs as productivity tools—an area where Taiwanese firms see not just opportunity, but profitability. Industry executives note that the high technical barrier to entry in this segment allows for healthier margins compared to more commoditized components.
Market expansion brings opportunities and challenges
With touch capabilities now shifting more directly into the display itself, the market theoretically opens up to more players. Most Taiwanese DDI firms already possess the fundamental technology needed to develop touch ICs. The real question, however, is whether they will invest the necessary resources to compete in a field already dominated by established players like Elan and US-based Synaptics.
Additionally, as touch functionality in AI PCs becomes more complex, new entrants may find it difficult to win contracts without pre-existing relationships or proven technical track records with PC OEMs. For many, building the kind of trust and integration needed for such partnerships will require significant time and effort.
Visual AI dominates across applications
While touch technology represents one area of opportunity, the more dominant theme across Computex 2025 remains AI-powered visual recognition. Though future AI systems will increasingly rely on multimodal input, including pressure, sound, and environmental data, visual data continues to form the core of many real-world applications.
Taiwanese IC designers are actively developing both hardware and software solutions in this space. Companies like Egis Technology Group, Etron, and Microip are showcasing end-to-end offerings: from dedicated visual processing chips to the platforms and AI models that run on them. Their goal is to carve out growth opportunities within the broader IoT ecosystem, where demand for intelligent vision continues to rise.
Despite the fierce competition, most companies argue that the visual AI market remains rich with opportunity. Nearly every AI application—from security and automotive to industrial automation and smart home devices—relies on some form of visual input. Industry executives say new use cases are constantly emerging, suggesting that the market is far from saturated.
"AI visual recognition is becoming a baseline requirement," said one executive. "It's not a niche anymore—it's fundamental."
For Taiwan's semiconductor ecosystem, which already boasts deep technical talent and robust manufacturing support, visual AI continues to offer a profitable and strategically vital frontier.
Article edited by Jerry Chen
