Below are the most-read DIGITIMES Asia stories from the week of April 6-April 13, 2026:
Demand for AI infrastructure spreads shortages beyond memory chips to MLCCs
Rising global investment in AI infrastructure is beginning to strain supplies of multi-layer ceramic capacitors (MLCCs), with industry data showing lengthening lead times across most major suppliers in early 2026. The tightening supply is largely driven by surging demand from AI servers and automotive electronics, particularly for high-performance components, while manufacturers are already operating near full capacity.
This imbalance is leading to deferred or rationed orders and early signs of price increases, with Murata reportedly considering hikes, signaling a potential broader upcycle in the MLCC market. Analysts note that dominant players like Murata and Samsung Electro-Mechanics are well-positioned to benefit, especially as rising DRAM prices and broader component demand highlight how AI growth is tightening supply chains across the electronics industry.
SK Hynix reportedly in talks with Microsoft and Google on long-term AI memory deals
Amid surging demand for AI infrastructure, SK Hynix is following Samsung Electronics in pursuing long-term memory supply agreements with major tech firms such as Microsoft and Google, marking a shift away from the industry's traditional reliance on short-term or spot purchases. SK Hynix is reportedly finalizing a multi-year DDR5 deal with Microsoft that includes safeguards like price floors and advance payments, while also negotiating a broader agreement with Google covering both DRAM and HBM.
This change reflects tightening global memory supply and soaring prices driven by AI data center expansion, with DRAM costs rising sharply over the past year. As a result, tech companies are increasingly prioritizing guaranteed access to supply over price stability, signaling a structural shift in how memory is procured in the AI era.
TCL-Sony merger shifts the competitive landscape for Korean TV giants
China's TCL and Japan's Sony have agreed to merge their TV and audio businesses into a joint venture named "Bravia," set to launch in 2027, combining TCL's manufacturing scale with Sony's premium brand and technology to create a competitor approaching the shipment scale of Samsung Electronics. The alliance is expected to intensify pressure on South Korean players like Samsung and LG Electronics, which are already grappling with weak demand, rising costs, and aggressive Chinese competition.
Analysts see the move as part of a broader structural shift, with Chinese firms moving beyond price competition to build brand and technological strength, forcing South Korean companies to prioritize market share defense amid tightening margins and an increasingly consolidated global TV industry.
MediaTek, Qualcomm reportedly cut smartphone AP orders with TSMC
Soaring memory prices and rising costs are forcing global electronics makers to cut 2026 shipment targets, with Chinese smartphone brands scaling back processor orders, prompting MediaTek and Qualcomm to reduce wafer starts at TSMC by 10-15% on advanced nodes. While weakening demand ripples through the supply chain, TSMC remains largely insulated thanks to fully booked leading-edge capacity driven by AI giants like Nvidia and Google.
The shift highlights a structural decoupling, where TSMC's growth is increasingly anchored in high-performance computing and AI rather than consumer electronics, leaving chip designers like MediaTek and Qualcomm more exposed to declining end-market demand and rising geopolitical and cost pressures.
Intel challenges TSMC CoWoS as Amazon, Google reportedly explore alternatives
Surging AI demand is pushing advanced chip packaging to its limits, with capacity constraints becoming even tighter than wafer fabrication and largely locked up by major customers like Nvidia. As a result, hyperscalers and chip designers are seeking alternatives, positioning Intel as the only credible challenger with its EMIB platform, which offers a more modular and flexible approach to integrating chiplets and high-bandwidth memory.
Companies such as Google and Amazon are reportedly exploring Intel's packaging services to diversify supply and secure capacity, with some even willing to prepay amid shortages. This shift highlights a broader industry transition where advanced packaging is becoming as critical as chip manufacturing itself, driving new competition and reshaping supply chain strategies as companies prioritize resilience in an increasingly constrained AI-driven market.
China 2.5D packaging demand surges, supporting Korean backend equipment growth
China's semiconductor equipment market is becoming a key growth driver for South Korean suppliers amid rising AI demand and tighter US export controls, with strong momentum in both HBM memory and 2.5D advanced packaging tools outpacing expectations. While companies tied to Samsung Electronics and SK Hynix maintain a technological edge, Chinese firms are rapidly advancing in front-end capabilities, narrowing the gap.
At the same time, bottlenecks in 2.5D packaging, critical for AI chips used by players like Nvidia, are driving further equipment demand. However, Beijing's aggressive localization policies, requiring up to 80% domestic sourcing, are reshaping competition and posing long-term access risks for foreign suppliers, forcing South Korean firms to balance near-term growth opportunities with increasing pressure to localize or differentiate technologically.
MediaTek builds an end-to-end challenge to Qualcomm and Broadcom
MediaTek is rapidly expanding its influence in the global Wi-Fi chip market by combining strong consumer growth with a strategic push into telecom operators across Europe and North America, while advancing technologically with early Wi-Fi 8 development. Its "total coverage" strategy has enabled it to deliver integrated, cost-effective networking solutions that compete directly with Qualcomm and Broadcom.
Unlike US rivals that have narrowed focus to high-performance computing, MediaTek's broad ecosystem approach is driving steady market share gains and growing relevance in telecom infrastructure, positioning its networking business as an increasingly important and potentially transformative growth engine in the AI-driven era.
Article edited by Jack Wu
