DIGITIMES Asia: News and Insight of the Global Supply Chain

AI boom strains optical supply chain as Nvidia, Corning expand fiber output

DIGITIMES — Fri, 29 May 2026 23:33:17 GMT

The global AI boom is pushing supply-chain pressure beyond memory chips and CPUs into optical communications, creating shortages across a less visible but increasingly critical layer of data-center infrastructure.

Innolux turns to packaging, smart cockpits in higher-margin push

Sherri Wang — Fri, 29 May 2026 23:32:14 GMT

Innolux plans to accelerate its transformation in 2026, with chairman and CEO Jim Hung pointing to three priorities: advanced semiconductor packaging, smart cockpits, and higher-margin panel applications.

Terafab explained: SpaceX outlines space-optimized chips and AI megafab plan in IPO filing

DIGITIMES — Fri, 29 May 2026 23:31:51 GMT

SpaceX's IPO prospectus details an early-stage "Terafab" initiative to build large-scale AI chip manufacturing capacity. Still, the company warns of significant execution uncertainty, unfinalized partnerships, and capital intensity risks. The plan, still in preliminary form, depends on future agreements and could face delays, cost overruns, and supply-chain constraints.

Pegatron Chairman says Taiwan's AI rally has not yet peaked

Elaine Chen — Fri, 29 May 2026 23:31:18 GMT

As Taiwan's equity markets continue to surge on enthusiasm surrounding artificial intelligence (AI), concerns about a potential AI-driven bubble have grown louder among investors and analysts.

'You're so rich now': Jensen Huang toasts Taiwan supply chain partners as Vera Rubin ramp begins

Eifeh Strom — Fri, 29 May 2026 23:31:03 GMT

At the Nvidia AI Factory MGX Ecosystem Showcase in Taipei, Taiwan, on May 29, Nvidia CEO Jensen Huang said that to meet the strong demand and support the production ramp for the next-generation Vera Rubin architecture, the company will double its artificial intelligence (AI) supercomputer capacity in Taiwan in 2026. He also thanked supply chain partners, saying he could not do it alone.

Samsung, SK Hynix trail Micron as automotive memory demand rises

DIGITIMES — Fri, 29 May 2026 23:19:11 GMT

Samsung Electronics and SK Hynix dominate the global memory chip market, but their weaker position in automotive memory is drawing new scrutiny as AI data centers absorb more DRAM and NAND supply.

TSMC's test arm Xintec ramps wafer testing capacity for 2H26 growth

Jingyue Hsiao — Fri, 29 May 2026 18:47:00 GMT

Xintec, TSMC's packaging and testing unit, is preparing for a broader testing-led expansion that could affect global chip supply chains. The company said capacity gains, new equipment spending, and strategic-partner orders may support growth in 2026, even as it continues a gradual shift in its product mix and packaging portfolio.

Google-backed robot startup tests E Ink electronic paper for humanoid skin

Levi Li — Fri, 29 May 2026 17:48:00 GMT

The humanoid robotics industry is looking beyond mechanical structures for its next wave of innovation, with materials emerging as a potential focus for new market opportunities. A Google-backed humanoid robot startup is exploring electronic paper as a next-generation display technology for robot skin, with Taiwan-based E Ink Holdings (EIH) entering the supply chain.

Analysis: Who's who at the trillion-dollar feast— Jensen Huang's Taipei dinners map AI's supply chain

DIGITIMES — Fri, 29 May 2026 16:30:00 GMT

When Nvidia CEO Jensen Huang stepped off a plane in Taipei on Saturday, May 23, he had already begun documenting the trip on X — night markets, fried food, and family. By the time he hosted more than 30 executives at a brick-walled restaurant six days later, the week had traced something much larger than a Computex schedule. It had mapped, dinner by dinner and post by post, the anatomy of the world's most consequential AI supply chain.

'Hardware is sexy again': Plug and Play CEO says AI boom has finally fulfilled his 2006 semiconductor dream

DIGITIMES — Fri, 29 May 2026 16:17:00 GMT

The building where Saeed Amidi runs his global venture empire was once one of the most important semiconductor facilities on the West Coast. Philips Electronics operated a fabrication plant here in Sunnyvale, California, employing 8,000 people at its peak. Then, like much of America's chip manufacturing base, it moved to Asia — to Taiwan, to Korea, to the supply chains that would come to define the global electronics industry for the next three decades.

Commentary: Five trends that stood out at Plug and Play's Silicon Valley May Summit

DIGITIMES — Fri, 29 May 2026 09:11:49 GMT

Three days at Plug and Play's Silicon Valley May summit left me with a clear takeaway: the technology industry is undergoing a structural shift, not just another hype cycle. Here are the five trends that stood out from the conversations, keynotes, and startup pitches I observed on the ground.

Chinese power chipmaker China Resources Microelectronics targets AI servers with PLP packaging

Levi Li — Fri, 29 May 2026 07:38:23 GMT

Generative AI, HPC, and large data centers are raising demand for chips with higher power efficiency, stronger thermal control, and denser packaging, making advanced packaging a more strategic part of the semiconductor supply chain. In China, panel-level packaging (PLP) is gaining traction for its larger format, higher output, and lower-cost potential.

Airoha deepens focus on networking and wireless edge AI

Jingyue Hsiao — Fri, 29 May 2026 07:25:35 GMT

Airoha Technology is sharpening its strategy around global networking and edge AI chips, aiming to expand its customer base and strengthen its competitive moat. The MediaTek subsidiary is targeting infrastructure, audio, and positioning markets with products already shipping, in production, or advancing through development milestones that could matter to users and operators worldwide.

Tariff relief tips the scales toward Taiwan over SEA in US auto parts sourcing

Jingyue Hsiao — Fri, 29 May 2026 07:24:29 GMT

The US has formally reduced tariffs on Taiwan-made auto parts shipped to the country, a move that could reshape sourcing decisions for automakers and suppliers worldwide. The change lowers landed costs for US buyers, strengthens Taiwan's price position against Southeast Asia, and may redirect more orders to Taiwanese manufacturers.

Foxconn to break ground on France chip-packaging plant, pursues Africa sovereign-AI

Sherri Wang — Fri, 29 May 2026 07:18:29 GMT

Foxconn chairman Young Liu said the company is preparing to break ground on its advanced packaging plant in France while continuing to explore sovereign-AI opportunities in Africa, as the electronics manufacturer looks beyond AI servers for its next phase of growth.

Compal accelerates server push with Texas plant and aims for 40% non-PC revenue

DIGITIMES — Fri, 29 May 2026 07:16:53 GMT

Compal Electronics said it was scaling up its server business and expects server revenue to reach 8-10% of total sales in 2026 as AI server rack-scale systems ramp and a new Texas plant begins operations in the second half. The company reported that server sales rose to 5% of revenue in the first quarter of 2026 from less than 1% previously, driven by a shift from printed circuit board (PCB) assembly to rack-level and full-system solutions that increase revenue per project.

Arm deepens ties with Taiwan chip designer QBit around edge AI and cybersecurity

Jingyue Hsiao — Fri, 29 May 2026 07:11:59 GMT

Arm EVP and Chief Commercial Officer Will Abbey visited QBit Semiconductor's Taiwan headquarters on May 27, signaling deeper cooperation that could shape future chip design for edge AI, physical AI, and quantum-computing cybersecurity. The visit highlights how platform alliances are increasingly influencing next-generation computing architectures for global technology markets.

MediaTek weighs price hikes, reaffirms TSMC partnership

Levi Li — Fri, 29 May 2026 07:10:25 GMT

MediaTek held its shareholders' meeting on May 29. Addressing the company's future outlook, Chairman Ming-Kai Tsai said that while the mobile phone market in 2026 has performed below expectations due to a sharp rise in memory prices, MediaTek's market share in various connectivity chips has increased significantly. He also noted that the company began generating revenue from AI data centers in 2026.

BYD unveils 4nm autonomous driving chip, expanding 'God's Eye' intelligent driving strategy

DIGITIMES — Fri, 29 May 2026 07:06:25 GMT

On May 28, BYD held a major technology launch event to strengthen consumer trust in intelligent driving and accelerate adoption of its three-tier "God's Eye" assisted-driving system — a push that comes as the world's largest EV maker faces mounting price competition, slowing domestic demand, and declining profitability.

CPO to become the next major growth driver, says GSEO; future volumes could rival smartphone lenses

Emily Kuo — Fri, 29 May 2026 07:04:05 GMT

Genius Electronic Optical (GSEO) held its shareholders meeting on May 29, with chairman Jones Chen and president Ying-Li Guo in attendance. GSEO reported standalone revenue of NT$20.89 billion (approx. US$665.7 million) in 2025, up 13% from NT$18.496 billion in 2024. Consolidated revenue reached NT$24.989 billion, increasing 8% from NT$23.187 billion in 2024. Earnings per share (EPS) came in at NT$32.84, slightly lower than the previous year's NT$38.35.

Quanta projects strong 2026 AI demand as it expands server and wearable production

DIGITIMES — Fri, 29 May 2026 06:39:13 GMT

Quanta said demand for artificial intelligence (AI) infrastructure would be very strong in 2026 as the company pushed deeper into servers and wearable devices, and that it was expanding production in the US, Mexico, and Thailand. The remarks were made at the company's shareholders' meeting on May 29, where leadership framed AI as a major growth opportunity while reiterating a cautious approach that prioritizes profitable execution.

Foxconn says its quantum computing unit aims for commercial takeoff around 2030

DIGITIMES — Fri, 29 May 2026 06:27:50 GMT

Foxconn has said its quantum computing work is drawing international attention, but the main challenge remains turning research into a commercial business. The company's quantum efforts could take about three years to reach an inflection point, with broader business potential expected around 2030, which may matter for industries and researchers worldwide.

Unimicron targets record 2026 revenue with ABF and AI system-board push

DIGITIMES — Fri, 29 May 2026 06:25:17 GMT

Unimicron said it will push advanced substrate and AI system-board upgrades in 2026 to capture accelerating demand for AI-related ASICs and switches, aiming for record revenue that would exceed its 2022 peak. The IC substrate and printed circuit board maker announced the strategy at its annual shareholders' meeting at the end of May, citing a shift in demand away from GPUs and CPUs toward ASICs, switches, and high-performance computing applications.

Foxconn chairman sets new profit target as 2025 earnings hit record high

DIGITIMES — Fri, 29 May 2026 06:23:01 GMT

Foxconn said its latest results highlight how technology manufacturing groups are reshaping supply chains for global customers. The company reported record earnings in 2025, raised dividends to a new high, and set a more ambitious profit target, signaling stronger returns for shareholders and continued investment in artificial intelligence, electric vehicles, and semiconductors worldwide.

Xpeng swings back to loss in 1Q26 as seasonal slowdown hits deliveries

DIGITIMES — Fri, 29 May 2026 06:17:11 GMT

Chinese EV maker Xpeng reported a significantly wider net loss for the first quarter of 2026, as the traditional seasonal slowdown in China's auto market weighed heavily on vehicle sales and deliveries.

Xiaomi names new Taiwan general manager and unveils four strategic priorities

DIGITIMES — Fri, 29 May 2026 06:16:40 GMT

Xiaomi unveiled new smartphones and wearables in Taiwan on May 29, while its new Taiwan general manager, Chih-sheng Liu, made his first public appearance. He outlined four priorities for the company's next stage in Taiwan, signaling how it plans to compete in a market that also reflects wider global consumer trends.

IBM targets AI-era trust with open source security, quantum computing bets

DIGITIMES — Fri, 29 May 2026 06:11:33 GMT

IBM and Red Hat are committing US$5 billion to Project Lightwell, a new enterprise security initiative designed to protect open source software supply chains as AI accelerates both software development and vulnerability discovery.

From cloud to factory floor: KETI outlines four directions shaping next-gen physical AI chips

Willis Ke — Fri, 29 May 2026 05:59:05 GMT

As AI moves from cloud environments into factories and physical systems, semiconductor design is being reshaped by new demands in speed, energy efficiency, and on-site learning. At a recent system-semiconductor seminar in South Korea, Seong-jun Jang, a research center director at the Korea Electronics Technology Institute (KETI), outlined four key architectural directions for future AI chips aimed at supporting industrial "physical AI."

Delta Electronics looks to micro grids as auto slugs through EV slowdown

Sherri Wang — Fri, 29 May 2026 04:36:49 GMT

Delta Electronics is leaning on artificial intelligence demand to sustain growth while preparing for longer-term opportunities in micro grids and higher-end automotive systems, even as its electric-vehicle business remains under pressure.

Taiwan auto parts makers look to capitalize on US tariff cuts

Kevin Wang — Fri, 29 May 2026 04:31:04 GMT

The US government will formally announce reduced tariffs for non-semiconductor Section 232 products, to be applied retroactively starting from May 1, 2026, according to a notice published in the late hours of May 27 (US Eastern Time) in the Federal Register. In particular, the move will slash tariffs on Taiwan-made auto parts to a flat 15% from an average 26.71%, a sharp reduction that is expected to trigger a strong rally for Taiwan's auto components makers.

Taiwan turns to AI and drones as defense demand rises

Rodney Chan — Fri, 29 May 2026 04:23:40 GMT

Former US Pacific Army commander Charles Flynn led a defense and aerospace industry delegation to Taiwan and attended the 2026 Taiwan-US Defense Industry Forum organized by the Taiwan External Trade Development Council (TAITRA) on May 28. Relying heavily on US arms sales, Taiwan is stepping up its use of AI and unmanned systems to strengthen defense resilience in response to shifting Chinese military tactics.

Anthropic reaches US$965B valuation, placing it ahead of OpenAI

DIGITIMES — Fri, 29 May 2026 04:10:33 GMT

Anthropic's post-money valuation has reached US$965 billion after its newest funding round, more than doubling its value since February 2026 and putting it past its rival ChatGPT as the two aim to reach IPO status this year.

Foxconn shifts gears from electronics maker to physical-industries powerhouse

Jingyue Hsiao — Fri, 29 May 2026 04:08:57 GMT

Foxconn chairman Young Liu said the company is accelerating its move into electric vehicles, robotics, and smart cities, arguing that these businesses will drive its next phase of long-term growth.

Intel's foundry comeback hinges on advanced packaging

DIGITIMES — Fri, 29 May 2026 04:05:41 GMT

Intel is reportedly making a major push into advanced semiconductor packaging as it seeks to strengthen its foundry business and expand capacity for its Embedded Multi-die Interconnect Bridge (EMIB) technology, according to ETNews.

Winbond pushes 3x-priced AI Si-Cap shipments as Semco order ramps in 2027

Jingyue Hsiao — Fri, 29 May 2026 04:02:56 GMT

AI demand for high-performance chips is driving up orders for semiconductor silicon capacitors, or Si-Caps, with Samsung Electro-Mechanics and several Taiwanese memory makers emerging as key names to watch. Supply-chain sources say the shift could reshape who captures future demand for advanced packaging.