DIGITIMES: News and Insight of the Global Supply Chain

India roundup: India's chip strategy tests its ability to build a competitive ecosystem

DIGITIMES — Sun, 12 Jul 2026 23:54:11 GMT

India is moving from semiconductor planning to execution, using funding, tariff changes, foreign investment approvals, and regional development efforts to build a broader electronics ecosystem beyond assembly.

SuperAlloy revenue climbs on recycled aluminum and semiconductor certification progress

DIGITIMES — Sun, 12 Jul 2026 23:53:25 GMT

SuperAlloy Industrial posted June consolidated revenue of NT$749 million (US$23.36 million), up 17.93% from May and 21.46% from a year earlier. The Taiwan-based materials maker said the increase helped lift second-quarter 2026 revenue to NT$1.98 billion, a 15.45% rise from a year earlier, while first-half 2026 revenue reached NT$3.852 billion, up 6.02%.

Sitronix sees zero-capacitance TDDI and automotive DDI drive growth

Lily Hess — Sun, 12 Jul 2026 23:52:54 GMT

Sitronix Technology said this week that zero-capacitance touch with display driver integration (TDDI) and automotive display drive IC (DDI) will drive its growth in 2026, as the chipmaker reported strong June and second-quarter revenue and said demand should remain positive into the second half of the year.

AI buildouts accelerate MLCC shortages; Taiwan firms eye 2H26 spillover orders

Lily Hess — Sun, 12 Jul 2026 23:52:22 GMT

As AI server supply chains move into the component stocking phase, the market for high-end passive components has heated up sharply, with tight supply of multilayer ceramic capacitors (MLCCs) drawing close attention across the industry. Taiwan passive-component makers posted strong revenue in the second quarter of 2026, and with order backlogs at major MLCC suppliers in Japan and South Korea rising rapidly, Taiwan firms are expected to capture spillover orders from AI server applications in the second half of the year.

Trio revenue rises on AI server battery backup demand in June

DIGITIMES — Sun, 12 Jul 2026 23:51:55 GMT

Trio Technology said June 2026 revenue rebounded on stronger stocking demand for battery backup units used in AI servers, even as the broader second quarter remained pressured by tight global memory supply. The Taiwan-based supplier also said downstream notebook and PC customers kept some inventory restocking demand in play, which pushed part of the consumer electronics shipment schedule into June.

Global defense boom unlocks new paths for automakers

Kevin Wang — Sun, 12 Jul 2026 23:51:38 GMT

The rise in global defense budgets has led to new opportunities for mainstream automakers as they seek to diversify their operations, yet the move into military and defense-related manufacturing presents another set of hurdles to overcome. These include lengthy certification cycles, highly fragmented specifications, and uncertainties surrounding policy continuity.

SK hynix hybrid bonding push signals next phase of HBM packaging race

DIGITIMES — Sun, 12 Jul 2026 23:51:02 GMT

SK hynix is moving early to prepare hybrid bonding technology for next-generation high-bandwidth memory (HBM), as competition in AI memory shifts from stacking capacity toward packaging density, thermal control, and tighter integration with AI accelerators.

Largan ramps variable aperture lens in 3Q as smartphone demand rebounds

Lily Hess — Sun, 12 Jul 2026 23:50:43 GMT

Optical leader Largan Precision said on July 9 that customer demand for new smartphones is picking up in the second half, while Chairman En-Ping Lin highlighted that strong technology and yield remain the decisive edge in a tougher market. He also said the company's high-end variable aperture lens will ramp in the third quarter, and periscope lens upgrades are set for 2027.

AI shifts toward 'slow thinking' as agent era approaches, says Google DeepMind's VP of research

Scarlett Yu — Sun, 12 Jul 2026 23:50:24 GMT

Ed Chi, vice president of research at Google DeepMind, said AI's next milestone will be its evolution from the fast, pattern-recognition-oriented thinking associated with System 1 toward the deeper reasoning capabilities of System 2. As large language models evolve into large reasoning models, the industry is now entering a new era of AI agents.

Arm CEO: AI agents to drive CPU demand as infrastructure shifts beyond GPUs

Scarlett Yu — Sun, 12 Jul 2026 23:49:57 GMT

GPUs have dominated AI infrastructure discussions over the past two years, powering everything from large language model (LLM) training and inference clusters to high-bandwidth memory (HBM), advanced packaging, and liquid-cooled server racks. As the industry races to expand computing capacity, GPUs have largely defined the conversation. That dynamic, however, may be beginning to change as CPUs diverge from the rims of AI narration, and increasingly emerge as a critical component of AI infrastructure.

AI infrastructure demand lifts WPG, WT Microelectronics to record Q2 revenue

DIGITIMES — Sun, 12 Jul 2026 23:49:35 GMT

Egis sells part of iCatch stake as ASMedia becomes largest shareholder

DIGITIMES — Sun, 12 Jul 2026 23:49:10 GMT

Egis Technology on July 9 said it sold part of its stake in iCatch Technology as part of a routine adjustment to its group equity holdings. The IC design company said the move was intended to improve capital efficiency and optimize its ownership structure, while Egis remained an important shareholder with about 12% of iCatch after the transaction.

Complex Micro Interconnection sees June sales rise as AI-led device demand lifts orders

DIGITIMES — Sun, 12 Jul 2026 23:48:52 GMT

Flexible circuit board maker Complex Micro Interconnection (CMI) said June 2026 revenue rebounded as consumer electronics shipments increased, even as shortages in automotive components and notebook memory continued to affect customers. The company also reported second-quarter revenue of NT$597 million (US$18.55 million), up 3.6% from the prior quarter.

ChainSea Information Integration lifts first-half revenue to record on AI customer service demand

DIGITIMES — Sun, 12 Jul 2026 23:48:30 GMT

ChainSea Information Integration Information, a digital transformation integration services provider, reported consolidated revenue of NT$622 million (US$19.39 million) in the first half of 2026, up 11.28% year on year and a record for the period. The company said the increase reflected stronger demand from government outsourcing work and enterprise AI customer service applications.

AI era accelerates Foxconn's shift to global 24-hour cybersecurity coverage

Lily Hess — Sun, 12 Jul 2026 23:48:14 GMT

Foxconn is using AI and coordinated security teams across Asia, Europe and the Americas to defend against cyberattacks as enterprises increasingly adopt AI. Chief Information Security Officer Wei-Bin Lee said that the company's global footprint makes it a prime target.

AI's new gatekeepers: US and China tighten grip on frontier models

DIGITIMES — Sun, 12 Jul 2026 23:47:30 GMT

The world's most powerful AI models are encountering a new constraint beyond chips, data and engineering talent: governments increasingly want a say in when frontier systems are released, who may access them and which capabilities should remain restricted.

MA-tek hits record June revenue on rising AI chip testing demand, CPO complexity

Eifeh Strom — Sun, 12 Jul 2026 23:46:58 GMT

Semiconductor testing company Materials Analysis Technology (MA-tek) reported June 2026 revenue of NT$558 million (approx. US$17.41 million), up 2.56% from May and 11.01% year over year, marking a record high for four consecutive months. Second-quarter 2026 revenue reached NT$1.64 billion, a record high for a single quarter, while first-half 2026 revenue totaled NT$3.07 billion, an increase of 17.47% from the same period in 2025.

Western automakers tap defense manufacturing to absorb idle capacity as military spending surges

Willis Ke — Sun, 12 Jul 2026 23:46:31 GMT

Global automakers are accelerating their expansion into defense manufacturing as geopolitical tensions fuel record military spending and persistent challenges in the automotive sector leave production capacity underutilized. Industry leaders, including General Motors (GM), Volkswagen, Mercedes-Benz, Renault, and Ford, are leveraging their large-scale manufacturing expertise to tap growing demand for military vehicles, logistics platforms, and defense systems.

Musk assembles Intel, SpaceX talent for Tesla wafer fab ambitions

Levi Li — Sun, 12 Jul 2026 23:45:59 GMT

Tesla and SpaceX are already converging around chips, talent and manufacturing under Terafab, even before any merger speculation turns into reality.

Column: Steel industry shifts from capacity to performance

Jingyue Hsiao — Sun, 12 Jul 2026 23:45:39 GMT

As infrastructure upgrades, rail decarbonization, and the reshaping of critical materials supply chains accelerate, the steel industry is moving away from mass production and into a new competitive stage that combines high-performance materials, smart manufacturing, and low-carbon development. What once centered on capacity, cost, and supply is now defined by material performance, process precision, carbon management, and international certifications.

Infinitix signs Sarawak AI pact to expand Southeast Asia cloud services

DIGITIMES — Sun, 12 Jul 2026 02:32:51 GMT

Taiwan-based AI infrastructure software provider Infinitix signed a memorandum of understanding with Sarawak Information Systems Sdn. Bhd. (SAINS) to jointly promote AI infrastructure, GPU private cloud and AI cloud services in Malaysia and across Southeast Asia. The agreement was announced as both sides outlined plans to build a sovereign AI and AI Cloud ecosystem centered on a new computing model called a Token Factory.

Coretronic's second quarter revenue topped NT$10 billion as display weakness persisted

DIGITIMES — Sun, 12 Jul 2026 02:32:29 GMT

Coretronic's latest sales update signals a mixed picture for the global electronics market, with demand improving in energy-saving products but lingering weakness in imaging. For international readers, the results highlight how tariffs, exchange-rate swings, and geopolitical risks continue to shape supply chains and customer demand across devices worldwide.

Column: Compute is no longer the AI bottleneck. Memory is — and suppliers know it

Jingyue Hsiao — Sun, 12 Jul 2026 02:32:09 GMT

After the semiconductor index nearly doubled in the first half of 2026 before a sharp pullback, the central question is whether the industry's AI-driven growth cycle has already peaked. This analysis examines the sustainability of the AI semiconductor boom, the outlook for memory and ASICs, and the geopolitical risks reshaping global supply chains.

Palo Alto Networks says AI agents are driving demand for identity security

DIGITIMES — Sun, 12 Jul 2026 02:31:52 GMT

AI agents are changing enterprise operations and raising new cybersecurity risks, with identity authentication emerging as a key concern for IT teams. According to Palo Alto Networks, 99% of companies are now using autonomous, conversational and generative AI tools, while machine identities in corporate networks have already outnumbered human employees.

SmartSens targets 2027 commercialization of Micro LED optical interconnects for AI infrastructure

Scarlett Yu — Sun, 12 Jul 2026 02:31:40 GMT

The rapid expansion of AI servers and large language models (LLMs) is driving unprecedented demand for data center computing, making high-speed interconnect technologies one of the next major battlegrounds in AI infrastructure.

Taiwan PCB leaders launch fundraising wave for AI data centers

Charlene Chen — Sun, 12 Jul 2026 02:31:24 GMT

Taiwan's PCB industry is entering a new expansion cycle as investment in AI data centers and other emerging applications accelerates. Since 2025, several board makers and upstream material suppliers have launched large-scale fundraising plans at home and overseas, including three bellwethers: Zhen Ding Tech, Unimicron, and Compeq.

InP supply crunch leaves South Korea exposed

DIGITIMES — Sun, 12 Jul 2026 02:31:06 GMT

Coherent has agreed to prepay AXT US$22.3 million under a three-year agreement for committed 6-inch indium phosphide substrate capacity, showing how buyers are moving to reserve future supply as AI data center investment strains a concentrated photonics materials market.

Porsche warns China luxury car demand remains weak, product gap may extend to 2028

Eifeh Strom — Sun, 12 Jul 2026 02:30:36 GMT

German luxury carmaker Porsche reported global deliveries of 122,300 vehicles in the first half of 2026, down 16% from a year earlier, with sales in the China market remaining weak and falling by more than 30% year over year.

Greenfiltec revenue climbed 19% in 1H26 on stronger AMC filter shipments

DIGITIMES — Sun, 12 Jul 2026 02:30:10 GMT

Greenfiltec said June 2026 consolidated revenue rose to NT$56.04 million (US$1.74 million), lifting first-half 2026 consolidated revenue to NT$311 million. That was up 14.87% in June and 18.35% for the first half from a year earlier, as higher shipments of AMC filters drove growth.

Hermes Testing's June revenue more than doubles as advanced chip test demand surges

DIGITIMES — Sun, 12 Jul 2026 02:29:41 GMT

Hermes Testing Solutions said that its June 2026 revenue jumped sharply as rising demand for advanced chip testing lifted sales of its custom products, cleaning materials, and engineering services. The test interface supplier said the growth was driven by continued strength in high-end semiconductor testing activity.

South Korean startup CSO eyes global Earth observation market as optical payload heads for orbit

Scarlett Yu — Sun, 12 Jul 2026 02:29:26 GMT

South Korean space optics startup CSO is preparing to launch its high-resolution optical payload aboard DaejeonSat, a domestically developed CubeSat scheduled to lift off on South Korea's Nuri launch vehicle in the second half of 2026. The mission is expected to serve as a key in-orbit validation milestone as the company expands beyond its Kazakhstan Satellite Constellation program into the European and North American Earth observation markets.

Taiwan connector maker Bellwether turns high-current design into patent licensing moat

Levi Li — Sat, 11 Jul 2026 03:45:39 GMT

Bellwether Electronic has evolved from a connector and wire harness manufacturer into a technology developer shaping industry standards and generating patent licensing revenue by focusing on customer challenges in high-current connectors, high-density integration and foolproof connector design, according to Bellwether Electronic chairwoman Hsu Jui-ying, speaking at the Taiwan Venture Capital and Private Equity Annual Conference on July 7.

Flytech lifts second-quarter revenue 38% on box PC and POS demand

DIGITIMES — Sat, 11 Jul 2026 03:45:28 GMT

Flytech Technology reported stronger June 2026 and second-quarter revenue as demand in the Americas and the commercial computing market continued to support shipments. The industrial computer maker said continued hardware volume and expanding software businesses should help sustain its growth trend.

Song Chuan hits record June revenue on AI power and storage demand

DIGITIMES — Sat, 11 Jul 2026 03:45:18 GMT

Relay supplier Song Chuan Precision reported record June 2026 revenue as customer orders rose and its acquisition of solenoid valve maker Tai Hsing Electronics was folded into its books. The company said the second half should stay supported by demand in new energy and AI power applications.

Lianyou Metals posts record second-quarter revenue as tungsten supply tightens

DIGITIMES — Sat, 11 Jul 2026 03:44:56 GMT

Lianyou Metals, a rare metals recycler focused on tungsten and cobalt, said its June consolidated revenue reached NT$750 million (US$23.36 million), up 22% from May and 555% from a year earlier. The Taiwan-based company also reported second-quarter consolidated revenue of NT$1.9 billion, rising 92% from the first quarter and 450% year on year, both record highs as the global tungsten supply chain remained tight.