Driven by surging global demand for AI and high-performance computing (HPC), Taiwanese listed companies achieved record combined profits of NT$3.4 trillion (approx. US$106.5 billion) in the first half of 2026, while their investment returns from China also rebounded. According to market research provider CRIF, Taiwanese listed firms' cumulative investment income from China reached NT$289.95 billion in the first half of 2026, an 11.12% year-over-year increase and an all-time high.

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.

Merida said its full-year 2026 business was still set to grow, supported by stable currency conditions, near-complete inventory reduction, and a stronger-than-expected rebound in lower-end bicycle demand in China. The bicycle maker outlined the outlook as the first-half pretax profit margin improved and product mix conditions became more balanced across key segments.

China has introduced five automotive chip certification and accreditation industry standards aimed at easing a key obstacle to domestic semiconductor adoption: getting locally designed chips qualified for production vehicles.

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.

Rising chip and copper prices are rapidly increasing cost pressure on LG Electronics.

Samsung Electronics and SK hynix have amassed a combined KRW278 trillion (approx. US$196.9 billion) in cash equivalents and short-term financial instruments by the end of the second quarter of 2026 as AI-driven memory demand lifted prices, revenue, and profit. The surge has shifted attention from earnings growth to how South Korea's two largest memory chipmakers will deploy their expanding financial firepower.

South Korea is looking beyond semiconductors and artificial intelligence for its next generation of strategic industries, naming seven technology fields it plans to cultivate over the next 10 to 20 years.