DIGITIMES Asia: News and Insight of the Global Supply Chain

Foxconn's operating profit jumps 63% as AI server scale offsets seasonal dip

Eifeh Strom — Fri, 15 May 2026 00:44:17 GMT

Hon Hai Precision Industry (Foxconn) reported first-quarter 2026 consolidated revenue of NT$2.11 trillion (approximately US$66.95 billion), up 29.68% year over year but down 19% from the fourth quarter of 2025 due to seasonal factors. Core profitability improved despite the slowdown.

Hua Hong bets US$6bn on Wuxi as specialty chip demand lifts margins

DIGITIMES — Fri, 15 May 2026 00:40:03 GMT

Hua Hong Semiconductor is accelerating its growth strategy through significant capacity expansion and the development of specialty technologies to meet rising global demand. During its latest earnings call on May 14, the company highlighted robust financial performance driven by emerging applications in artificial intelligence and power management.

Applied Materials posts 25-year margin high as agentic AI drives equipment boom

DIGITIMES — Fri, 15 May 2026 00:37:17 GMT

Applied Materials delivered record revenue and earnings in its second fiscal quarter of fiscal 2026, signaling a robust expansion in the semiconductor equipment market driven by the global build-out of artificial intelligence (AI) infrastructure.

SMIC beats margin guidance even as operating profit slides

DIGITIMES — Fri, 15 May 2026 00:34:54 GMT

On May 14, Semiconductor Manufacturing International Corporation (SMIC) released its unaudited financial results for the first quarter of 2026, reporting a modest quarterly revenue increase alongside a double-digit year-over-year gain. The company recorded revenue of US$2,505 million for the period, a 0.7% increase from US$2,489 million in the final quarter of 2025. This performance reflects an 11.5% growth compared to the US$2,247 million generated during the same quarter of the previous year.

Foxconn says AI server mix and consignment model will drive annual shipments to more than double

DIGITIMES — Fri, 15 May 2026 00:31:13 GMT

Foxconn (Hon Hai) held an online investor briefing on May 14, where executives outlined that cloud and networking products accounted for nearly 50% of group revenue in the first quarter of 2026 and that AI server shipments will more than double year-over-year for 2026. The company said a shift toward consignment supply for some AI server transactions has depressed reported revenue sequentially but did not affect overall profitability and helped reduce working capital and improve capital efficiency.

TCL tightens grip on Guangzhou LCD hub, unleashes US$4bn OLED expansion

DIGITIMES — Fri, 15 May 2026 00:30:59 GMT

China's TCL Technology is deepening its control over its Guangzhou display manufacturing base while accelerating OLED investment, reflecting its broader push to cement a leading position across both LCD and OLED markets.

Ubiqconn Technology reports improved gross margin in the first quarter as product mix shifts

DIGITIMES — Fri, 15 May 2026 00:30:45 GMT

Ubiqconn Technology reported consolidated revenue of NT$130 million in April 2026, down 25% month-over-month and down 20% year-over-year, and cumulative revenue for the first four months of 2026 totaled NT$678 million, a 12% decline from a year earlier. The firm said short-term revenue was affected by market demand adjustments, but ongoing product mix optimization had begun to drive structural, differentiated growth across its end markets.

Faster AI servers drive a shift to advanced PCB technologies

Elaine Chen — Fri, 15 May 2026 00:22:52 GMT

The global buildout of artificial intelligence data centers is driving a new wave of demand for high-speed networking infrastructure, as the efficiency of communication between servers becomes increasingly critical.

InP compound semiconductors break AI power and bandwidth barriers

Charlene Chen — Thu, 14 May 2026 23:36:22 GMT

Indium phosphide (InP) and other compound semiconductors are taking on a bigger role as demand rises for highly efficient light emission and ultra-high-frequency transmission. Their lower electron scattering and lower loss characteristics position them to help break through AI's energy and bandwidth barriers.

Etron chair warns of US-South Korea alliance threatening Taiwan's chip industry

Charlene Chen — Thu, 14 May 2026 23:35:50 GMT

Memory industry profits have surged, and Samsung Electronics recently posted earnings that exceeded TSMC's revenue for the first quarter of 2026, underscoring memory's rise as a strategic resource. Etron Chairman Nicky Lu warned that amid global geopolitical shifts, the US and South Korea are highly likely to move toward a deep alliance that could pose a formidable challenge to Taiwan's semiconductor industry over the next 10 years.

Chunghwa Telecom expands satellite ambitions across multiple orbits

Elaine Chen — Thu, 14 May 2026 23:35:26 GMT

The global satellite industry is entering what many executives and analysts describe as a historic turning point, as telecommunications operators increasingly integrate satellite connectivity into mainstream communications infrastructure and commercial services.

Apple confronts the AI agent era — is the App Store at risk?

DIGITIMES — Thu, 14 May 2026 23:09:13 GMT

Artificial intelligence has become one of Apple's most complicated strategic challenges. At next month's Worldwide Developers Conference, the company is expected to unveil a broader AI push, including a revamped Siri and deeper generative AI integration across its devices. But behind the scenes, Apple is grappling with a larger question: how to maintain control of the App Store in an era increasingly shaped by autonomous AI agents.

Column: The new space arms race is being fought with AI, lasers, and autonomous satellites

Elaine Chen — Thu, 14 May 2026 23:08:40 GMT

The emerging space arms race toward 2030 is no longer defined simply by the number of satellites nations can launch into orbit. Increasingly, it is being shaped by breakthroughs in advanced communications, artificial intelligence (AI), orbital logistics, and rapid launch systems, technologies that could redefine military power in space over the next decade.

Foxconn targets 3Q26 CPO switch mass production, eyes multifold 2027 growth

DIGITIMES — Thu, 14 May 2026 23:08:11 GMT

Foxconn announced at an online investor briefing on May 14 that its common-package optics (CPO) switches are scheduled for mass production and shipments beginning in the third quarter of 2026, with an annual shipment target of around ten thousand units. Executives said current visibility points to shipments expanding several times in 2027.

Nan Ya PCB targets high-end IC substrate growth amid AI demand

Jingyue Hsiao — Thu, 14 May 2026 23:07:45 GMT

Nan Ya PCB's push into advanced IC substrates could influence global AI hardware supply chains by increasing capacity for high-performance GPUs, switches, and edge AI devices. The company's 2026 development plans and use of parent-group factories in southern Taiwan aim to meet accelerating AI-related demand as well as higher automotive and mobile sector requirements.

Taiwan touch panel makers post mixed 1Q26 results on consolidation and uneven demand

Willis Ke — Thu, 14 May 2026 23:07:20 GMT

Taiwan's touch panel makers posted mixed first-quarter 2026 results. TPK Holding led the sector after consolidating display driver IC maker Ilitek, boosting revenue, margins, and net profit despite ongoing core operating losses. In contrast, GIS Holding remained in the red amid weak demand visibility, while YoungFast Optoelectronics increasingly relied on electromechanical and gaming-related products to cushion softness in its traditional business.

WeMo unveils dual-scooter service and plans cross-platform integration by 2026

DIGITIMES — Thu, 14 May 2026 23:06:10 GMT

Taiwan scooter-sharing leader WeMo on May 12 announced a major service upgrade that introduced a new white-license model, dubbed WeMo Go, and signaled plans to integrate its platform with multiple mobility and payment services by the end of 2026. The company said the move launches a dual electric-scooter era designed to expand user choice and scale shared mobility across Taiwan.

Taiwan IC revenue surges 29% in 1Q26, full-year outlook tops US$270 billion

DIGITIMES — Thu, 14 May 2026 23:05:37 GMT

Explosive AI-driven demand and a booming memory rebound push Taiwan's chip industry to NT$1.93 trillion (approx. US$61.9 billion) in the first quarter of 2026, with foundry and memory segments leading the charge.

South Korea denies plan to share semiconductor tax windfall with citizens

Elaine Chen — Thu, 14 May 2026 23:04:36 GMT

A political debate in South Korea over how to manage windfall tax revenues from the country's semiconductor boom has intensified after remarks by a senior presidential aide sparked widespread controversy and conflicting media reports.

China's auto market pivots to EVs as profits erode

Elaine Chen — Thu, 14 May 2026 23:03:43 GMT

Rising oil prices tied to Middle East tensions have accelerated a structural shift in China's auto market, even as weakening domestic demand and intensifying price competition squeeze industry profits.

Analysis: Why hackers target Foxconn—the blueprint economy that puts every smart factory at risk

Jingyue Hsiao — Thu, 14 May 2026 23:03:16 GMT

Foxconn confirmed a cyberattack on some of its North American facilities on May 12. Affected plants continued normal production, the company said, while its cybersecurity team activated emergency response measures. Beyond that, Foxconn offered little — a terse acknowledgment from one of the world's most consequential manufacturers. Reports have since named its Mount Pleasant, Wisconsin, plant as the likely point of origin.

AI server tracker: Optical module suppliers show mixed momentum as AI networking demand reshapes market

DIGITIMES — Thu, 14 May 2026 23:01:52 GMT

Taiwan's optical module supply chain delivered mixed April 2026 results, reflecting uneven demand patterns across AI infrastructure and data center networking markets. According to the latest data, the overall April revenue reached approximately NT$2.1 billion (US$66.6 million), down 7.4% month-over-month but still up 1.2% year-over-year. Cumulative revenue for the sector remained strong, rising nearly 20% year-over-year.

Interview: The 6G clock is ticking — and Ericsson wants Taiwan in its corner

Jingyue Hsiao — Thu, 14 May 2026 23:01:22 GMT

The global mobile standards race has moved into the 6G prelude, with Ericsson saying the first fully implementable 6G specification is expected as early as March 2029. In an exclusive interview with DIGITIMES, Marie Hogan, who leads the 6G portfolio strategy for Ericsson's global networks business, said 3GPP is pushing ahead with 6G standardization as the industry weighs the technology's AI-native design, uplink demands, and migration path from 5G.

Taiwan panel industry transforms by riding the AI wave into microLED optical communications

DIGITIMES — Thu, 14 May 2026 08:49:01 GMT

Under the AI boom, microLED optical communication is expected to become a key opportunity for the display industry's transformation.

Memory supply crunch pushes Phison to historic earnings

Elaine Chen — Thu, 14 May 2026 08:44:05 GMT

Phison Electronics posted record earnings in April as the artificial intelligence boom and tightening NAND flash supply drove memory prices sharply higher, underscoring the growing influence of AI demand across the semiconductor storage industry.

AI chip boom drives record growth for Taiwan testing firm MPI

Elaine Chen — Thu, 14 May 2026 08:39:28 GMT

With surging demand for artificial intelligence, high-performance computing, and custom AI chips, MPI Corporation said strong momentum in semiconductor testing equipment and testing interface products drove another record quarter, underscoring the rapid expansion of AI-related chip validation demand across the industry.

TSMC expands CoWoS and SoIC capacity on AI boom

Charlene Chen — Thu, 14 May 2026 08:06:57 GMT

TSMC said on May 14, 2026, that it is rapidly expanding CoWoS and SoIC advanced packaging capacity as AI demand drives the construction of 18 new fabs and advanced packaging facilities worldwide. At its 2026 Technology Symposium, TSMC vice president Bor-Zen Tien detailed the company's latest progress in advanced process nodes, 3DFabric advanced packaging, global expansion, and AI-powered smart manufacturing.

QBit Semiconductor targets edge AI growth as copier chips turn oligopolistic

Charlene Chen — Thu, 14 May 2026 07:18:36 GMT

IC design firm QBit Semiconductor will list on the Emerging Stock Board on May 15, 2026, and chairman Simon Shen, a former Kinpo executive, said the debut marks a new milestone for the company and underscores a promising growth outlook.

TSMC symposium spotlights AI expansion, advanced packaging demand

Charlene Chen — Thu, 14 May 2026 07:07:57 GMT

TSMC held its annual technology symposium in Hsinchu on May 14, 2026, after its North America stop, with executives noting that AI applications are rapidly expanding from cloud data centers to edge devices — driving surging demand for semiconductor compute density, high-bandwidth connectivity, power efficiency, and thermal management. Ray Wan, director of Asia-Pacific business, said TSMC will leverage advanced process technology and advanced packaging to help customers accelerate innovation in the AI era.

Japan expands push to secure legacy chip supply chain

DIGITIMES — Thu, 14 May 2026 07:05:51 GMT

Japan is broadening its semiconductor support strategy by expanding subsidies for domestic production of legacy chips, aiming to strengthen economic security and reduce reliance on overseas suppliers.

Tower Semiconductor secures US$1.3 billion in silicon photonics commitments as AI demand accelerates

DIGITIMES — Thu, 14 May 2026 06:52:30 GMT

Tower Semiconductor reported a strong start to 2026, marked by double-digit revenue growth and a significant jump in net profit. Following a "solid" first quarter, the company issued guidance for the second quarter that would represent the highest revenue in its history. Management highlighted surging growth in silicon photonics and a strategic restructuring of manufacturing in Japan as key drivers of long-term expansion.

TSMC SVP: better AI days lie ahead, remember the keyword 'COUPE'

Jingyue Hsiao — Thu, 14 May 2026 06:38:38 GMT

Taiwan Semiconductor Manufacturing Co. (TSMC) used its 2026 Technology Forum on May 14 to outline a sweeping view of the AI-driven transformation in semiconductors. Co-COO and senior vice president Kevin Zhang argued that the AI revolution is advancing far faster than anticipated and is reshaping the industry from generative AI and AI agents to inference computing.

China's fiber optic industry evolved from catch-up to supply chain scale

Charlene Chen — Thu, 14 May 2026 05:47:51 GMT

As demand for AI data centers, high-speed transmission, and cloud infrastructure continues to rise, the fiber-optic industry has once again become a focal point in the global market, with China's supply chain playing a critical role in the expansion. From heavy reliance on overseas technology and materials to building a complete industrial cluster and becoming a major global supplier, China's fiber-optic industry has undergone nearly half a century of technological catch-up and supply-chain growth.

Luxshare targets global auto Tier 1 status with BeijingWest chassis deal after Leoni takeover

DIGITIMES — Thu, 14 May 2026 05:43:12 GMT

China's Luxshare is accelerating its push into the global automotive supply chain through a proposed acquisition of BeijingWest Industries International Limited, marking another major step in its transition from a consumer electronics assembler into a global automotive Tier 1 supplier.

AI surge fuels patent race in server cooling with Taiwan firms among global leaders

DIGITIMES — Thu, 14 May 2026 05:39:43 GMT

A Taiwan Intellectual Property Office report released in 2026 showed that AI demand accelerated a global patent race in data center and server cooling technologies, with Inventec, Foxconn, and Quanta emerging among Taiwan's top patent holders. The report analyzed 8,449 published and announced patent families from 2015 through 2024 and found cooling-related patent families grew at a 17% compound annual growth rate over the past decade, and entered a distinct growth phase in 2022 when annual filings first exceeded 1,000.