DIGITIMES Asia: News and Insight of the Global Supply Chain

AI infrastructure hits copper limits, foundries lock down silicon photonics capacity through 2028

DIGITIMES — Sun, 31 May 2026 23:58:45 GMT

Generative AI is moving at a speed scaling past critical computation thresholds, initiating a shift from a "chip-centric to an interconnect-centric" architecture era. The physical limitations of legacy copper cabling have created a severe, industry-wide obstacle that is disrupting financial and operational roadmaps, prompting companies to lock down silicon photonics foundry capacity through 2028.

Flexium targets higher-value products and AI applications as turnaround expected in second half of 2026

DIGITIMES — Sun, 31 May 2026 23:58:18 GMT

Flexium Interconnect held its 2026 annual shareholders meeting on May 28 and outlined a strategic shift toward technology upgrades, higher-value products and improved operational efficiency as the company pursues a transformation expected to accelerate in the second half of 2026. Executives said global macroeconomic and geopolitical uncertainties persist, but management forecast that initiatives begun this year will start to deliver results later in the year.

Taiwan supply chains draw US interest in defense and drone tech

DIGITIMES — Sun, 31 May 2026 23:57:53 GMT

A defense industry forum in Taiwan signaled growing interest among US military tech companies in Taiwan's supply chain, particularly as a new era of warfare defined by AI and unmanned systems takes shape. Speakers at the event noted a need to shift from governments relying solely on traditional weapons procurement to supply chain integration between companies.

LG denies report on sale to Hisense TV as Chinese rivals gain ground

DIGITIMES — Sun, 31 May 2026 23:57:15 GMT

LG Electronics has denied a Korean media report that it discussed a possible sale or restructuring of its TV business with China's Hisense, as intensifying competition from Chinese brands puts new pressure on legacy TV makers in South Korea and Japan.

Taiwan's AI boom has a blind spot — and lenders are filling it

Elaine Chen — Sun, 31 May 2026 23:56:42 GMT

Taiwan's economy has become one of the most closely watched in the world, riding a surge in global demand for semiconductors and advanced AI servers that have powered exports and private investment to new highs. But that prosperity has a sharp edge. Much of the growth has been concentrated in the technology sector and among wealthier households, while traditional industries, small businesses, and lower-income workers have seen far more limited gains.

E Ink sees AI power crunch driving city, outdoor growth

Charlene Chen — Sun, 31 May 2026 23:56:18 GMT

E Ink Holdings held its annual shareholders' meeting on May 27, 2026, and passed all proposals. Chairman Johnson Lee said the global tech industry is rapidly entering a new stage in which energy efficiency has become the core competitive edge, and that the sector is shifting from pursuing process shrink and performance gains to optimizing energy acquisition and use. As global demands for energy saving and carbon reduction grow stricter, Lee said this trend will accelerate the adoption of e-paper in outdoor advertising and smart city applications.

Myson Century eyes drone, AI health expansion through quick acquisitions

Rodney Chan — Sun, 31 May 2026 23:55:59 GMT

Myson Century, a Sun Yad Group company, has acquired five companies over the past 10 months, including Y-S Electronic, GCC, Ever-Clear, TL Biotech, and Dacome International through Hsin-Li Chemical Industrial. Myson Century chairman Jhang You-Ming said the company will keep pursuing acquisitions, especially in the drone sector, and expects to acquire more domestic firms in 2026.

India roundup: EMS providers face margin pressure as Anthropic steps up local hiring

DIGITIMES — Sun, 31 May 2026 23:55:44 GMT

India's technology ecosystem is seeing parallel expansion across AI software adoption, electronics manufacturing, and semiconductor investment. Anthropic is scaling its India leadership to capture enterprise demand, while manufacturers move into higher-margin products. At the same time, Wi-Fi 7 production and fresh chip funding highlight deepening industrial capability across the ecosystem.

Thinking Electronic sees tighter capacity and AI orders push 2026 momentum

Jingyue Hsiao — Sun, 31 May 2026 23:55:23 GMT

Thinking Electronics' outlook points to broader implications for global supply chains, as rising demand for protection components, AI data-center equipment, and electric vehicles tightens capacity across Asia. The Taiwan-based maker is also seeking to offset higher material costs, a trend that could affect pricing and sourcing for customers worldwide.

Interview: Sharp CEO taps Foxconn ecosystem for brand revival

Jingyue Hsiao — Sun, 31 May 2026 23:55:12 GMT

Sharp President and CEO Tetsuji Kawamura said the company has eased some long-standing management pressures, but its main challenge now is to expand its brand, develop new businesses, and accelerate globalization simultaneously. He outlined the strategy in an interview with DIGITIMES.

Column: As token costs collapse, AI infrastructure splits into five layers

Jingyue Hsiao — Sun, 31 May 2026 23:54:54 GMT

Falling inference prices and tightening data regulations are pushing AI compute beyond the hyperscale data center — reshaping infrastructure decisions for enterprises, governments, and device makers worldwide

South Korea's ETRI maps three-part plan to scale physical AI and robot sovereignty

DIGITIMES — Sun, 31 May 2026 23:54:25 GMT

South Korea's Electronics and Telecommunications Research Institute (ETRI) unveiled a medium- to long-term strategy to advance physical AI and robot intelligence at its 50th anniversary forum, proposing three core initiatives to strengthen national competitiveness as global tech firms accelerate investment. Executives and industry participants gathered to discuss a K-physical AI approach centered on Meta RFM sovereignty, robot data governance, and an ecosystem for self-growing AI robots.

AWSC targets optical comms growth by 2027

Jingyue Hsiao — Sun, 31 May 2026 23:54:09 GMT

AI data centers are driving increased demand for faster transmission worldwide, prompting compound semiconductor foundries to shift toward optical communications. Advanced Wireless Semiconductor Company said the segment is emerging as a major growth engine, with early products under customer testing and more meaningful results expected in 2027 as adoption broadens.

AuthenX targets CPO bottlenecks with detachable metalens FAU

DIGITIMES — Sun, 31 May 2026 23:53:43 GMT

AuthenX is preparing to showcase a detachable 2D fiber-array unit at COMPUTEX 2026, as the Taiwanese optical-communications company seeks to address packaging and alignment challenges in co-packaged optics.

Niching buys control of thermal partner as cooling demand rises

DIGITIMES — Sun, 31 May 2026 08:19:48 GMT

Niching Industrial Corp. said on May 28 that it will acquire an 82% stake in Ming Chun Yuan Precision Technology for NT$508 million, with the transaction expected to close on July 1 after the required legal procedures are completed.

WinWay to double test capacity with NT$3.5B southern Taiwan plant

Lily Hess — Sun, 31 May 2026 08:19:35 GMT

WinWay Technologies, a major test interface provider, followed ASE Holdings in holding a groundbreaking ceremony for its new plant at the Renwu Industrial Park in southern Taiwan. The company plans to invest NT$3.5 billion (US$111.1 million) in the facility construction.

Aspeed and Lattice announce partnership on programmable server management chip

Jingyue Hsiao — Sun, 31 May 2026 08:19:23 GMT

Aspeed Technology and Lattice Semiconductor have formed a strategic partnership that could reshape how servers are managed in data centers worldwide. The collaboration aims to combine platform control and programmability into a single chip, a move that may help operators adapt more quickly to changing AI, cloud, and infrastructure demands.

United Integrated Services sees AI capex boom extending fab order visibility to 2030

Jingyue Hsiao — Sun, 31 May 2026 08:19:12 GMT

United Integrated Services, a key fab-building partner for TSMC and Micron, said the global artificial intelligence (AI) boom is continuing to drive semiconductor capital spending and lifting its order backlog to record levels. At its shareholders' meeting on May 29, the company stated that advanced processes, advanced packaging, and high-tech fab construction are now being shaped by AI and high-performance computing demand.

Formosa Plastics outlines semiconductor push with NT$29.2 billion investment to add NT$30 billion annual output

DIGITIMES — Sun, 31 May 2026 08:18:48 GMT

Formosa Plastics disclosed on May 28 that it would expand into semiconductor chemicals, green energy and healthcare, announcing plans to invest NT$292 billion (approx. US$9.2 billion) to develop 27 products expected to increase annual output by NT$30 billion. A spokesperson said the program covered semiconductor-grade gases and liquids, key materials and new polymers, including electronic-grade hydrogen, ammonia water, hydrochloric acid and sulfuric acid, as well as atomic layer deposition ruthenium precursors, photoresist diluents, 1-hexene, polyolefin elastomers and polyaryletherketone.

GIS takes AR and optical communication opportunities to pave transformation

Emily Kuo — Sun, 31 May 2026 04:25:53 GMT

Facing memory shortages and Sharp's plan to shut down its Guishan K2 plant by the end of 2026, GIS chairman Hsien-Ying Chou said the company faces greater operational challenges in the second half of 2026. However, its transformation strategy is accelerating. Among its new businesses, optical waveguide products used in AI glasses and other applications began small-volume shipments in the first quarter of 2026, while its optical communications business is targeting advanced optical source packaging and testing services. Both new application areas are expected to gradually ramp up in 2027, creating new growth momentum for revenue and gross margins.

AI demand and transport costs fuel continued price hikes in 2Q26

Emily Kuo — Sun, 31 May 2026 04:25:32 GMT

As the Middle East conflict escalates and demand for AI applications grows, product quotations continue to rise in the second quarter of 2026. Chen-Cheng Pan, chairman of silicone materials distributor Topco Scientific Materials, says upstream material shortages have also become severe. As applications in AI, optical communications, and robotics continue to expand, the proportion of revenue contributed by electronic materials is expected to increase further.

AUO sees automotive orders setting up revenue gains from 2026

Jingyue Hsiao — Sun, 31 May 2026 04:25:12 GMT

AUO said its automotive business has entered a high-growth phase, with annual orders for in-vehicle products now exceeding current-year revenue. The company expects revenue benefits from orders secured over the past two years to begin in the second half of 2026 or 2027, supporting growth at AUO Mobility Solutions.

Senao Networks projects 2026 growth as ISP expansion offsets memory shortage risks

DIGITIMES — Sun, 31 May 2026 04:24:56 GMT

Networking equipment maker Senao Networks reported that shareholders approved its 2025 financial report and a cash dividend of NT$3 (US$0.096) per share at a meeting on May 28, 2026, and the company said its shift into the internet service provider market was beginning to yield results while a persistent memory shortage could cut first-half 2026 shipments by 20% to 30% versus orders. The firm disclosed 2025 revenue of NT$15.036 billion and net profit attributable to the parent of NT$307 million, with earnings per share of NT$5.2.

The humanoid race is no longer about the robot — it's about who can deploy at scale

DIGITIMES — Sun, 31 May 2026 04:24:41 GMT

The conversation about humanoid robotics I observed over two days in Sunnyvale had a different quality from what I remembered a year ago. The demos were real. The deployments were live. The debate had shifted from "will this work" to "who gets to scale first" — and the answer is not obvious.

Huawei's Aito M9 turns the luxury SUV into a rolling AI platform

DIGITIMES — Sat, 30 May 2026 23:53:46 GMT

In aerodynamics, the Aito M9 underwent more than 100 engineering refinements, achieving a drag coefficient of just 0.249 Cd — among the lowest ever recorded for a full-size sport utility vehicle.

Yageo eyes AI liquid-cooling dealmaking, targets protection components

Charlene Chen — Sat, 30 May 2026 23:53:30 GMT

Yageo chairman Pierre Chen, who has become Taiwan's richest man, reiterated at the company's recent shareholders meeting that the group will not sit out opportunities in the AI applications market. He said Yageo will continue its long-running merger-and-acquisition strategy to drive transformation, raise product technology levels, and expand its full-spectrum integrated solutions.

Silicon Motion lays out AI-focused storage roadmap for edge, enterprise and automotive

DIGITIMES — Sat, 30 May 2026 23:53:14 GMT

Silicon Motion Technology (SMI) has released a portfolio of AI-optimized storage controllers and products ahead of Ccmputex 2026, targeting edge inference, AI PCs, enterprise AI infrastructure and automotive AI systems. The company said it will demonstrate new Edge SSD controllers, embedded UFS and eMMC controllers, enterprise NVMe solutions and automotive-grade storage aimed at improving data movement, latency and sustained workload performance for AI deployments.

AI demand and chip investment lift Taiwan exports and business outlook

DIGITIMES — Sat, 30 May 2026 23:53:02 GMT

Taiwan's economic outlook improved in April 2026 as rising AI demand and receding Middle East geopolitical risks boosted manufacturers' business sentiment, the National Development Council (NDC) said on May 28. The council reported gains in both its leading and coincident business climate indicators, signaling steady growth momentum for the island's export-oriented economy.

60% of smart factories underperform as South Korea expert eyes tacit knowledge for manufacturing AX

Jingyue Hsiao — Sat, 30 May 2026 23:52:45 GMT

South Korea is treating AI transformation as a future test of manufacturing competitiveness. The challenge now is not only installing smart systems, but converting frontline workers' tacit knowledge into standardized data that machines can use. For global industries, the outcome could shape how factories raise quality, productivity, and resilience.

Pentagon funding talks put US drone startups on wartime footing

DIGITIMES — Sat, 30 May 2026 23:52:29 GMT

The Trump administration is in talks to provide funding to several US drone companies, in a move that would mark a stronger federal push to expand domestic drone manufacturing and reduce the cost of battlefield systems that have become central to modern warfare.

Winbond accelerates custom memory transition

Charlene Chen — Sat, 30 May 2026 23:52:07 GMT

Winbond Chairman Arthur Chiao said market sentiment in the second half of 2026 would carry the strong momentum seen in the first half, with the overall market remaining in a supply shortage. He expects the current shortage will be difficult to ease in the near term, and said capacity constraints might not be resolved until the second half of 2027.

Taiwan Mobile sets sights on NT$1 trillion revenue as AI and enterprise services drive growth

DIGITIMES — Sat, 30 May 2026 23:51:58 GMT

Taiwan Mobile outlined plans to pursue a NT$1 trillion (US$31.88 billion) revenue target as it shifts emphasis to AI, enterprise services, and new technology businesses, executives said after the company's shareholders' meeting on May 29. Shareholders approved the 2025 financial report and a cash dividend of about NT$4.8 per share, while leadership framed the push into AI-enabled enterprise solutions as the next stage of growth.

Nan Ya Plastics targets three new business pillars to lift electronic materials to 60% by 2026

DIGITIMES — Sat, 30 May 2026 23:51:48 GMT

Nan Ya Plastics announced at its May 29 shareholders meeting that it would pivot into three new business areas — medical materials, semiconductor materials, and comprehensive power solutions — as part of a broader transformation planned for 2026 and 2027. Chairman Chia-Chau Wu said the move aims to raise the share of electronic materials in group revenue from just over 50% today to about 60% by 2026, driven by demand from AI infrastructure and high-performance computing.

LinkerBot deal brings AI bionic hands closer to mass market

DIGITIMES — Sat, 30 May 2026 23:51:38 GMT

LinkerBot, a leading Chinese developer of robotic dexterous hands, has acquired Jingling Zhikang in a strategic move that could push AI-powered bionic hands from high-cost rehabilitation devices into a broader assistive technology market.

Nvidia, Microsoft and Arm hint at 'new era of PC' ahead of Computex

Joseph(C) Chen — Sat, 30 May 2026 23:51:18 GMT

Nvidia, Microsoft and Arm posted identical messages on X on Friday, each displaying the words "A New Era of PC" alongside the geographic coordinates of Taipei — a coordinated tease that has sent the market speculating about what the three companies plan to announce at Computex 2026, which opens next week.