DIGITIMES Asia: News and Insight of the Global Supply Chain

Taiwan thermal firms ride AI server boom, AVC and Auras lead 2026 surge

DIGITIMES — Tue, 12 May 2026 04:34:00 GMT

Taiwan's thermal management sector continued to diverge sharply in early 2026, with AI server demand increasingly separating high-growth liquid cooling and advanced server thermal suppliers from more traditional cooling players.

Kuaishou targets US$20B Kling AI spin-off to tap video generation demand

DIGITIMES — Tue, 12 May 2026 04:23:08 GMT

Kuaishou is holding talks with potential investors to spin off its Kling AI video unit in a pre-IPO funding round valuing it at US$20 billion, according to The Information. The Chinese social media company aims to capture investors' growing interest in AI stocks as video generation platforms reshape the face of social media and entertainment.

Taiwan AI testing boom lifts KYEC, MPI, and WinWay to record 2026 revenue

DIGITIMES — Tue, 12 May 2026 04:22:21 GMT

Taiwan's semiconductor testing and probe card supply chain maintained solid momentum entering 2026, driven by continued AI accelerator, high-performance computing (HPC), and advanced packaging demand.

Viking AI revenue jumps to 12% as resistor lead times stretch to 15 weeks

Charlene Chen — Tue, 12 May 2026 04:16:58 GMT

Viking, a major maker of automotive thin-film resistors, said AI-related revenue rose quickly to 12% in the first quarter of 2026 from less than 5%, helped by stronger shipments for data centers, server power supplies, and other applications. The company also said resistor lead times have stretched from five weeks to about 15 weeks as AI demand tightens capacity.

Innolux shares surge on reports of potential TSMC FOPLP partnership

Elaine Chen — Tue, 12 May 2026 04:15:58 GMT

Unlike AUO, which remained in the red in the first quarter of 2026, Innolux returned to operating profitability, posting net income of NT$1.79 billion (approx. US$56.9 million) for the quarter.

Taipower new president focuses on AI power demand, grid resilience

Rodney Chan — Tue, 12 May 2026 04:13:38 GMT

Taiwan Power Company (Taipower) is entering a new wave of generation system installations at its Tunghsiao, Talin, and Hsinta Phase II plants. New president Kuo Tien-Ho, who took office on May 11, 2026, said 13 gas-fired combined-cycle units are scheduled to come online over the next 10 years to meet surging electricity demand from AI and other emerging technologies.

Altos targets South Korean AI server market with software edge

Kevin Wang — Tue, 12 May 2026 04:03:52 GMT

Altos Computing, Acer's AI server subsidiary, is targeting South Korea's relatively mature demand for high-end computing with flagship systems based on Nvidia Blackwell architecture. The company is also leaning on its in-house Altos aiWorks software as a key differentiator, as it transitions from a hardware maker into an AI infrastructure solutions provider.

Memory shortage slows Flexium transformation with new product launches to lift profits in 2H26

Eifeh Strom — Tue, 12 May 2026 03:38:11 GMT

Flexible printed circuit board (FPCB) manufacturer Flexium Interconnect said during an earnings call on May 8 that, looking ahead, imbalances in memory market supply and demand will impact the industry. Aside from major US customers with stronger pricing power, the mass production and shipment schedules for new products such as smart glasses and artificial intelligence (AI) servers have been delayed, becoming one of the key variables affecting the company's operational transformation in 2026.

Univacco posts record first-quarter revenue as North American demand strengthens

DIGITIMES — Tue, 12 May 2026 03:25:41 GMT

Univacco Technology reported that consolidated revenue for the first quarter of 2026 reached NT$774 million, up 3.9% year-over-year and a record for the period, driven by steady growth in North American demand and a pickup in orders from end-brand customers. The company said the Americas now account for a growing share of sales and have become a key driver of the group's operating momentum.

OpenAI launches US$4 billion deployment venture to accelerate enterprise AI adoption

DIGITIMES — Tue, 12 May 2026 03:24:52 GMT

OpenAI is expanding beyond AI model development and into enterprise implementation with the launch of the OpenAI Deployment Company, a new business unit backed by more than US$4 billion in initial funding that will help organizations integrate AI into core operations and workflows.

Pan Jit and subsidiary sponsor Make NTU 2026 hackathon to push robotic gripper innovations

DIGITIMES — Tue, 12 May 2026 03:24:23 GMT

Pan Jit International and its subsidiary participated in Make NTU 2026, a 36-hour student hackathon hosted by the electrical engineering student association at National Taiwan University, and sponsored corporate awards focused on robotic gripper applications. The event, held in 2026, aimed to promote projects that combined artificial intelligence, sensing, smart control, and innovative design to explore smart robotics and related future technologies.

AcBel Polytech teams with OmniOn and Kinpo Group to target AI power-supply market

DIGITIMES — Tue, 12 May 2026 03:21:39 GMT

AcBel Polytech reported record first-quarter consolidated revenue in 2026, driven by rising demand for enterprise and data-center power, but flagged muted near-term profit performance due to product-mix shifts and delayed shipments of some high-power products. The firm said first-quarter consolidated revenue was NT$8.581 billion (US$273 million), up 20.5% year-over-year and down 6.7% sequentially, and that April revenue was NT$3.152 billion, up 34.61% year-over-year and up 0.19% month-over-month.

Taiwan EV charging rollout slows as grid and soil issues delay new sites

Sherri Wang — Tue, 12 May 2026 03:21:22 GMT

Rising international oil prices driven by conflict in the Middle East could further support electric vehicle sales in 2026 and boost demand for charging stations, according to charging operators. But resolving land-use and grid-construction bottlenecks has become a key challenge as operators compete for a share in Taiwan's EV charging market.

WPG Holdings, WT Microelectronics see record April revenue on strong AI server demand

Eifeh Strom — Tue, 12 May 2026 03:11:48 GMT

Leading IC distributors WPG Holdings and WT Microelectronics posted double-digit growth in both monthly and cumulative revenue for January to April 2026, driven by demand for data centers and AI-related servers.

China NEV retail penetration tops 60% in April as oil prices dent gasoline car demand

DIGITIMES — Tue, 12 May 2026 03:09:23 GMT

China's retail penetration rate for new-energy vehicles, including battery electric vehicles and plug-in hybrids, reached 61.4% in April, the highest on record and the first time it crossed 60%, according to the China Passenger Car Association. The surge from 52% in March coincided with rising international oil prices linked to the Middle East conflict, which supply chain sources said accelerated the shift away from gasoline cars.

Nvidia's modular AI strategy fuels Delta Electronics supplier boom

Levi Li — Tue, 12 May 2026 02:54:36 GMT

AI infrastructure demand is reshaping the electronics manufacturing sector, pushing component makers to move up the value chain into module production and system integration. Delta Electronics has emerged as a prominent example, with its aggressive global expansion plans also accelerating capacity investments by suppliers, including rack maker JPP Holding and battery module supplier Dynapack International Technology in Thailand.

Exclusive: China reportedly tightens solar equipment export reviews ahead of Trump's visit

Jingyue Hsiao — Tue, 12 May 2026 02:38:39 GMT

China has stepped up export scrutiny of solar photovoltaic equipment, extending controls beyond heterojunction tools to most key production equipment and supply-chain sources, sources said. The tightened reviews, tied to preparations for US President Donald Trump's upcoming trip to China, are intended to increase Beijing's leverage in future negotiations, industry sources added.

Nvidia's copper-to-fiber AI shift boosts China's optical plays

Levi Li — Tue, 12 May 2026 02:18:39 GMT

Nvidia is deepening its partnership with US fiber-optics maker Corning, with plans to replace copper cable connections with optical fiber in next-generation rack-scale AI systems. The move is drawing renewed attention to China's role in the global optical communications supply chain.

Ichia targets optical communications growth with Evercast Precision investment

Jingyue Hsiao — Tue, 12 May 2026 02:06:35 GMT

Ichia Technologies announced on May 11 that it plans to make a cash-based strategic investment in optical communications components maker Evercast Precision, totaling no more than NT$74 million (approx. US$2.36 million).

Commentary: Trump-Xi summit may offer China a pause, not a truce

Levi Li — Tue, 12 May 2026 02:00:17 GMT

Ahead of the expected Trump-Xi summit in Beijing, the US and China are first holding preparatory talks in South Korea, placing trade, technology, and semiconductor export controls at the center of the negotiation track.

Intel's revival secret: Suppliers with TSMC's stamp of approval

Joseph(C) Chen — Tue, 12 May 2026 01:48:31 GMT

With TSMC capacity under mounting supply-demand pressure, Intel — once written off by many as a company fighting for survival — is staging a credible comeback.

Arm's AGI CPU demand surges as supply constraints loom

Jingyue Hsiao — Tue, 12 May 2026 01:31:52 GMT

Arm is preparing to expand beyond its traditional IP licensing business by introducing data center CPUs, positioning itself to compete directly with some of its own customers, including AWS, Google, and Nvidia, while maintaining rapid growth in licensing revenue driven by rising demand for AI infrastructure.

Apple, Qualcomm and MediaTek take different paths as TSMC capacity stays tight

Jingyue Hsiao — Tue, 12 May 2026 00:44:53 GMT

TSMC is facing fierce customer competition and supply shortages as demand surges for artificial intelligence and high-performance computing chips, forcing fabless chipmakers to consider limited shifts in manufacturing partners to ease constraints.

Commentary: SEA semiconductor industry pivots towards AI as a strategic hub

Charlene Chen — Tue, 12 May 2026 00:43:37 GMT

SEMICON SEA 2026 drew heavy crowds, underscoring Southeast Asia's emergence as an indispensable "strategic hub" in the global AI compute supply chain. The region's semiconductor players are now moving from "capacity substitution" to "technological self-reliance" in what is shaping up to be a long-distance race.

Research insight: Taiwan's auto tech pushes beyond components into autonomous systems

Elaine Chen — Tue, 12 May 2026 00:43:23 GMT

A DIGITIMES Research observation at the 2026 Taipei International Auto Electronics Show found that Taiwan's automotive electronics industry is steadily shifting from supplying individual components toward integrated systems spanning autonomous driving sensors, in-cabin safety, autonomous logistics vehicles, and localized supply-chain integration.

Commentary: Musk's xAI exit shows Anthropic's AI strength

Lily Hess — Tue, 12 May 2026 00:43:05 GMT

On May 6, Elon Musk was in several places at once: confronting OpenAI in court, announcing on X that xAI would no longer operate as an independent company, and handing over a large share of his AI compute to another AI firm, Anthropic. Three years after Musk gathered 12 researchers from DeepMind, Google, and OpenAI to found xAI with the stated goal to "understand the universe," he has now moved to shut it down.

Infineon wins US patent ruling against Chinese GaN rival Innoscience

Elaine Chen — Tue, 12 May 2026 00:42:54 GMT

A patent dispute between Infineon Technologies and China's Innoscience over gallium nitride (GaN) technology has escalated after the US International Trade Commission upheld a preliminary ruling finding that Innoscience had infringed one of Infineon's GaN-related patents.

GaN patent fight between China and Europe extends beyond courtroom

Elaine Chen — Tue, 12 May 2026 00:42:43 GMT

As the global patent battle over gallium nitride (GaN) semiconductors intensifies, a recent ruling by the US International Trade Commission has deepened the rivalry between Infineon Technologies and China's Innoscience while also underscoring how geopolitics is increasingly shaping the future of the power semiconductor industry.

Compeq emerges as key supplier in AI and low-orbit satellite boom

Elaine Chen — Tue, 12 May 2026 00:42:22 GMT

Compeq Manufacturing said first-quarter 2026 revenue reached a record high for the period, driven by sustained demand from major US customers for smartphones, notebooks, and low-earth-orbit (LEO) satellite products, as well as growing shipments tied to AI data centers.

Chenbro expands from AI server chassis into liquid-cooling CDU

Charlene Chen — Tue, 12 May 2026 00:41:31 GMT

Chenbro CEO Corona Chen said strong AI demand is reshaping data center architecture, pushing the company beyond its traditional chassis business into systems, racks, and liquid-cooling infrastructure. She said Chenbro has moved from PC chassis to general-purpose servers and AI servers, and is now entering racks, liquid-cooling cabinets, and IT racks by leveraging its mechanical design expertise.

Himax targets 2026 rebound on auto DDI and AI glasses momentum

Lily Hess — Tue, 12 May 2026 00:41:15 GMT

Himax Technologies said its revenue and profit in the first quarter of 2026 both came in at the upper end of its original financial forecasts, and it expects operations to trend higher over the next several quarters as new automotive projects enter mass production and non-driver ICs gain traction, particularly timing controllers (TCONs) and WiseEye AI. The Taiwan-based display driver IC (DDI) maker disclosed these results in its latest earnings report.

Japan's diamond chip startups move toward production as factory and samples advance

DIGITIMES — Tue, 12 May 2026 00:41:00 GMT

Japan's diamond semiconductor sector is moving closer to practical use, as university-backed startups advance factory construction, sample production, and device demonstrations for high-frequency, high-power, and harsh-environment applications.

Apple, AI server demand power Tripod to record 1Q26 as PCB orders spill over

DIGITIMES — Tue, 12 May 2026 00:37:18 GMT

Taiwanese PCB maker Tripod Technology posted its strongest-ever first-quarter performance in 2026, driven by resilient server and memory demand tied to the global AI infrastructure buildout and spillover orders from higher-end AI server supply chains.

Interview: Cyient Semiconductors CEO on Kinetic acquisition — why power is the new compute bottleneck

DIGITIMES — Tue, 12 May 2026 00:36:59 GMT

As the semiconductor industry grapples with the growing energy demands of artificial intelligence, Cyient Semiconductors is repositioning itself away from being a primarily semiconductor engineering and ASIC services provider and toward a more product-oriented hybrid model centered on intelligent power and proprietary semiconductor products.

Taiwan's cybersecurity market shifts toward managed services as ransomware pressure mounts

Willis Ke — Tue, 12 May 2026 00:36:25 GMT

For many Taiwanese businesses, cybersecurity still means buying a router and moving on. That gap between perception and exposure has become expensive — and increasingly hard to ignore. Speaking at CYBERSEC 2026 in Taipei, executives from Zyxel Group subsidiaries Zyxel Networks and Zyell Solutions described an industry in transition: from one-time hardware purchases toward continuous managed protection, and from conventional encryption toward systems designed to withstand quantum-era threats.

Chicony reports rebound in first quarter as higher-end keyboards and imaging lift margins

DIGITIMES — Tue, 12 May 2026 00:33:27 GMT

Chicony Electronics reported a sharp profit rebound in the first quarter of 2026, excluding one-time consolidation costs tied to its Dongguan plant, executives said, with earnings per share reaching NT$2 (US$0.064), signaling a recovery in core profitability. The company disclosed these results on May 11 and said April revenue eased after some customers pulled orders into March, but it expects sales to stabilize from May. Still, it anticipates second-quarter revenue to grow quarter on quarter.

Powerlogic reports weaker first quarter as chip shortages hit gaming fan sales

DIGITIMES — Tue, 12 May 2026 00:31:03 GMT

Powerlogic reported weaker first-quarter results after upstream shortages of chips, DRAM, and GPUs prioritized for AI applications squeezed supply to the broader gaming market, delaying customer pull-ins and weighing on operations, the firm announced. The company said these supply constraints cut into demand and shipments for gaming cooling components in the first quarter of 2026.

TienPin posts more than fivefold April revenue surge as AI liquid-cooling demand climbs

DIGITIMES — Tue, 12 May 2026 00:18:46 GMT

TienPin United Enterprise reported consolidated revenue of NT$61.922 million (US$1.97 million) in April 2026, a 516.94% increase from April 2025. It said cumulative consolidated revenue for the first four months of 2026 reached NT$338 million, up 963.53% year on year. The company attributed the gains to the rapid buildout of AI computing infrastructure and increased demand for liquid-cooling and precision cleaning services for AI servers.

Transcend chair sees AI memory supercycle

Lily Hess — Mon, 11 May 2026 09:45:46 GMT

AI will bring an epochal technology revolution, as did the invention of steam power and electricity, according to Transcend Information chairman Chung-Won Shu. He argued that DRAM and NAND flash will face shortages in 2026-2027 and could remain undersupplied in 2028. He said Transcend's multi-level cell (MLC) NAND inventory, bought before certain memory manufacturers stopped production, is enough for about one year. Shu added that the company has recently broken into China's cloud service provider (CSP) supply chains, underscoring a structural change in the memory industry.