DIGITIMES: News and Insight of the Global Supply Chain

China's rare-earth concentrate prices stay 48% higher, but downstream demand remains weak

DIGITIMES — Tue, 13 Oct 2026 00:16:56 GMT

China's rare-earth concentrate prices remain nearly 50% above year-earlier levels despite a marginal fourth-quarter increase, underscoring persistent raw material cost pressures even as downstream buyers resist higher prices.

Podcast highlights: Is Elon Musk using TSMC talks as leverage against Intel and Samsung?

Yunnie Cheng — Tue, 13 Oct 2026 00:14:30 GMT

Elon Musk's recent confirmation that his "TeraFab" initiative is in talks with Taiwan Semiconductor Manufacturing Co. (TSMC) signals that a project originally framed as a challenge to the established foundry model is pivoting toward a more pragmatic industrial path, according to DIGITIMES analyst Luke Lin.

Terafab and beyond: Musk's push to fuse silicon, robotics, space into one AI system

DIGITIMES — Tue, 13 Oct 2026 00:10:55 GMT

As plans for the Terafab project begin to take shape, the emergence of a scaled chipmaking initiative increasingly reflects Elon Musk's broader ambition to push vertical AI integration across his expanding industrial stack.

Foxconn partners on Taiwan-made battery storage systems for 2027 rollout

DIGITIMES — Tue, 13 Oct 2026 00:09:58 GMT

Tun Green Power partnered with Foxconn, Billion Watts, NoonSpare Energy Technology, and Rich Electric to develop behind-the-meter energy storage systems (ESS) using Taiwan-made lithium battery cells. The companies signed a cooperation agreement in Taiwan on October 12, 2026, targeting mass production and deliveries in the first half of 2027, with a deployment goal of 100 megawatt-hours (MWh) as corporate customers seek more options for localized storage equipment.

AUO enters next chapter as David Chang takes president role to reshape group operating model

Yunnie Cheng — Tue, 13 Oct 2026 00:09:00 GMT

Amid ongoing shifts in panel market cycles and end-market demand, AUO continues to press forward with its strategic corporate transformation. Marking its 30th anniversary in 2026, the company will host its "30 Years of Excellence, Co-Creating the Future" sports day on October 17. chairman and CEO Paul Peng and newly appointed president David Chang will meet with the media, drawing keen market attention to AUO's next-phase transformation roadmap.

Samsung, SK Hynix NAND profits seen surging on enterprise SSD demand

DIGITIMES — Tue, 13 Oct 2026 00:08:27 GMT

Samsung Electronics and SK Hynix are expected to see a sharp increase in NAND flash profits in 2026 as surging demand for enterprise solid-state drives (SSDs) drives up memory prices and improves profitability, adding another earnings boost beyond high-bandwidth memory (HBM).

Toyota rewires China JV structure as GAC takes control of FAW Toyota stake

DIGITIMES — Tue, 13 Oct 2026 00:07:56 GMT

As the push toward smarter vehicle systems and full electrification intensifies alongside China's strengthening position in the EV market, these trends are increasingly prompting overseas automakers to enter a new phase of operational restructuring.

China's AI revenue gap with US exposes deeper monetisation divide

DIGITIMES — Tue, 13 Oct 2026 00:06:48 GMT

China's leading artificial intelligence companies are gaining users and global recognition, but their commercial returns remain far behind those of US rivals. The growing disparity raises a question for China's AI industry: can low-cost, open-weight models generate sustainable profits, or will the greatest financial rewards flow to the platforms distributing them?

Samsung to pay chip workers special bonuses in stock, pending shareholder approval

DIGITIMES — Tue, 13 Oct 2026 00:06:09 GMT

Samsung Electronics plans to pay its semiconductor employees special bonuses entirely in company shares in late March or early April 2027, with two-thirds of the stock subject to selling restrictions for up to two years. The payments, funded by 10.5% of the chip division's operating profit, remain subject to shareholder approval.

Samsung, LG Display reportedly supply OLED panels for seven Nvidia RTX Spark laptops

DIGITIMES — Tue, 13 Oct 2026 00:05:19 GMT

Samsung Display and LG Display are supplying OLED panels for seven laptops built on Nvidia's RTX Spark platform, securing positions in the premium PC market as global shipments plunge and Chinese display manufacturers expand production capacity.

BTL sees AI testing surge, schedules extend to 1Q27

DIGITIMES — Tue, 13 Oct 2026 00:04:52 GMT

Electronic testing laboratory BTL reported September 2026 revenue of NT$87 million (US$2.73 million), up 10.2% year-over-year, as AI server testing projects at its second Guishan plant continued to drive growth. Revenue for the first three quarters reached NT$752 million, a 12.3% year-over-year increase, extending the company's double-digit growth trend since the start of 2026.

AI growth outlook stays strong as risk-free returns come under pressure

Yunnie Cheng — Tue, 13 Oct 2026 00:04:23 GMT

Capital expenditure by the top four US cloud service providers (CSPs) is projected to expand further in 2027. Meanwhile, nations such as France and Saudi Arabia are aggressively constructing sovereign AI infrastructure, ensuring that demand for AI hardware remains on a firm upward trajectory. In addition, shipments of next-generation AI servers powered by more capable Nvidia Vera Rubin chips will further fuel earnings growth across Taiwan's advanced semiconductor process nodes and advanced packaging sectors.

China's Jinai Tech backed by state, targets 2027 advanced process pilot-line launch with ambition laid upon SEA

Charlene Chen — Tue, 13 Oct 2026 00:03:13 GMT

China's 15th Five-Year Plan and the Ministry of Industry and Information Technology's strong chip project are accelerating the domestic replacement of semiconductor equipment and materials amid intensifying US-China competition. Xiamen-based Jinai Tech, which integrates resources from both sides of the Taiwan Strait, is leveraging plasma, chemical vapor deposition (CVD), and atomic layer deposition (ALD) technologies to enter the advanced process equipment market, with its pilot production line scheduled to begin operations in mid-2027.

Taiwan's ICT sector enjoys 3-year boom as US debt swells

Yunnie Cheng — Tue, 13 Oct 2026 00:02:39 GMT

Driven by robust demand for AI, high-performance computing (HPC), and cloud data services, Taiwan's information and communications technology (ICT) production momentum has soared for three consecutive years. Meanwhile, mounting US and global debt levels are driving up real financing costs and tightening international financial conditions.

Geothermal power too costly for chipmakers? Taiwan's semiconductor industry sees value beyond electricity prices

Scarlett Yu — Tue, 13 Oct 2026 00:02:18 GMT

As geothermal energy prepares to enter Taiwan's semiconductor renewable electricity market, the most immediate question is how much each kilowatt-hour (kWh) will cost compared with solar, wind, and conventional power generation.

Nan Pao sees breakthroughs in adhesives for semiconductors, foldable displays

Rodney Chan — Tue, 13 Oct 2026 00:01:17 GMT

Nan Pao Resins Chemical reported September revenue of NT$2.308 billion (US$72.35 million), up 16.5% year-over-year and a record for the same period, as it continued to develop new products and applications, win new customers, and raise its market share. Revenue for the first nine months of 2026 reached NT$19.345 billion, up 12.0% from the same period in 2025 and also a record for the period.

Interview: Microsoft's Maia GM on Maia 300, Taiwan and HBM supply

DIGITIMES — Mon, 12 Oct 2026 16:05:00 GMT

Microsoft's in-house Azure Maia chips will become the main platform for its own AI services, including Microsoft 365 Copilot, GitHub Copilot and Microsoft Foundry. However, the company will keep using GPUs from Nvidia and AMD, Andrew Wall, general manager of the Azure Maia program, told DIGITIMES.

Microsoft's Maia 300 rack: 96 accelerators, HBM4, mostly liquid-cooled

DIGITIMES — Mon, 12 Oct 2026 13:05:00 GMT

Microsoft has released architecture details for Maia 300, its third-generation Azure AI accelerator. The design pairs 96 accelerators per rack with a two-tier network that links up to 12,288 accelerators into a single superpod. The company says the system is built for cloud-scale agentic inference, and that it co-designed the software, silicon, rack infrastructure, networking, and data centers to run as one platform.

Microsoft to scale Maia AI chips to multi-gigawatt deployments, unveils TSMC N2P-based Maia 300

DIGITIMES — Mon, 12 Oct 2026 13:05:00 GMT

Microsoft will scale its in-house Azure Maia AI accelerators to multi-gigawatt deployments starting in 2027, making Maia the primary AI inference system for its products and services. The company also unveiled Maia 300, the third generation of the chip family, which it says will start production deployments next year.

Apple iPhone launch and holiday demand lift Momo revenue to a record September

DIGITIMES — Mon, 12 Oct 2026 12:20:00 GMT

Fubon Multimedia, which operates the Momo e-commerce platform, reported consolidated revenue of approximately NT$8.59 billion (US$269.4 million) in September 2026, up 8.2% from a year earlier. Revenue for the first nine months reached nearly NT$80 billion, an increase of about 3.9%, setting records for the period on both a monthly and cumulative basis.

China proposes physical controls and tougher testing for new vehicles

DIGITIMES — Mon, 12 Oct 2026 11:55:00 GMT

China proposed tighter vehicle design and safety requirements that would restrict fully hidden door handles, virtual controls for critical functions and several interior features in new vehicles. The draft rules, issued by the Ministry of Industry and Information Technology and three other government departments, are intended to reduce safety risks associated with rapidly developed vehicle models and would affect automakers seeking approvals in China.

HHGalaxy reports record 3Q26 revenue as Double 11 demand builds

DIGITIMES — Mon, 12 Oct 2026 11:45:00 GMT

Taiwanese e-commerce operations provider HHGalaxy reported consolidated revenue of NT$621 million (US$19.5 million) for September 2026, up 31.74% from a year earlier, as brands prepared for the Single's Day shopping event. Revenue for the first nine months reached NT$4.925 billion, a 26.76% annual increase, while third-quarter revenue rose 34.43% to NT$1.774 billion, setting a third-quarter record.

Chinese government and industry make full push into AI glasses development: AR display integration and lightweighting gain traction

DIGITIMES — Mon, 12 Oct 2026 09:42:49 GMT

DIGITIMES notes that China continued to advance smart glasses policies from the central government to local governments in 2026, driving both enterprise production and consumer purchase subsidies.

Finland orders Google to halt work at two AI data center sites

DIGITIMES — Mon, 12 Oct 2026 09:25:00 GMT

Finnish authorities ordered Google to suspend parts of construction at planned AI data centers in Muhos and Kajaani after forests were allegedly cleared at the sites before an environmental impact assessment was completed. The decision affects Google subsidiary Tuike Finland Oy and introduces uncertainty around the company's US$15 billion investment plan in Finland.

EU caps annual HEV imports at 350,000 to curb trade deficit with China

Yunnie Cheng — Mon, 12 Oct 2026 08:54:44 GMT

The European Union plans to cap imports of hybrid electric vehicles (HEVs) at 350,000 units per year, with safeguard measures potentially taking effect as early as December 1, 2026. The four-year framework sets a 350,000-unit limit in its first year, followed by a 6% annual quota expansion starting in the second year, while both sides commit to complying with World Trade Organization (WTO) rules.

Samsung reportedly secures long-term contracts covering up to 80% of 2027 memory supply

DIGITIMES — Mon, 12 Oct 2026 08:45:32 GMT

Samsung Electronics has committed 75–80% of its 2027 memory supply, including high-bandwidth memory (HBM), to long-term agreements (LTAs), the Korea Economic Daily reported on October 9, 2026, citing industry sources. Nvidia, Google and Microsoft were among the major customers that had largely finalized contracts. Samsung has not confirmed the allocation or named the buyers.

Nanya gross margin hits 85.7% as low-priced DRAM contracts roll off

Sherri Wang — Mon, 12 Oct 2026 08:35:28 GMT

Nanya Technology reported record quarterly earnings in the third quarter of 2026, according to unaudited results released on October 12, as DRAM average selling prices (ASPs) rose more than 60% sequentially following the expiration of low-priced long-term agreements (LTAs).

Memory surge lifts phone prices, boosting N-1 and used-device demand

Charlene Chen — Mon, 12 Oct 2026 08:33:26 GMT

Rising memory prices have forced smartphone brands to raise handset prices, hurting new-device sales in 2026. Global smartphone shipments are expected to drop 15-17%, while demand for N-1 generation and used smartphones is surging, potentially pushing the used-phone market beyond 300 million units and creating new orders for display, battery, and casing suppliers.

How 'Filter Moore's Law' is doubling revenue for a Taiwan chip filter maker

Yunnie Cheng — Mon, 12 Oct 2026 08:20:00 GMT

Under what the industry terms the "Filter Moore's Law," each process node shrink lowers tolerance for airborne molecular contaminants, causing filtration demand to grow exponentially. For global airborne molecular contamination (AMC) filtration leader Ye Siang Enterprise, that demand is now showing up in record revenue.

Chenbro Micom expands into Nvidia Vera Rubin rack-scale systems, 2026 revenue already tops full-year 2025

DIGITIMES — Mon, 12 Oct 2026 08:19:53 GMT

Taiwanese server chassis maker Chenbro Micom is expanding its role in AI infrastructure, moving beyond traditional server enclosures into high-end AI servers and rack-level solutions. The company has secured involvement in multiple Nvidia Vera Rubin platform projects covering GPUs, CPUs, and storage, while custom ASIC programs for cloud service providers (CSPs) are gradually scaling up according to schedule.

DIGITIMES Insight: Personal AI agents could reshape who controls the smart cockpit experience

Levi Li — Mon, 12 Oct 2026 08:08:31 GMT

Meta's recent introduction of its personal AI agent, Muse, has renewed interest in AI assistants capable of operating across devices. Unlike conventional AI features tied to individual smartphones, computers or vehicles, personal AI agents use memory, reasoning and tools to understand user needs and maintain personalised experiences across services and devices. DIGITIMES observes that this shift could extend AI agents into vehicles, transforming smart cockpits from standalone in-car systems into connected environments integrated with smartphones, wearables and personal digital services.

Largan signals early peak-season cut, challenging phone chips in 4Q26

Charlene Chen — Mon, 12 Oct 2026 07:55:27 GMT

Largan chairman and CEO Adam Lin said October 2026 orders are tracking at roughly the same level as September's, but will begin declining in November as customers cut their forecasts after new phones went on sale. The comments signal that demand across the smartphone supply chain will weaken in the fourth quarter of 2026, creating challenges for handset chipmakers and other suppliers that performed strongly during the third quarter.

Moonshot AI's Hong Kong IPO faces a critical ownership dispute ahead of US$50 billion debut

DIGITIMES — Mon, 12 Oct 2026 07:42:21 GMT

China's Moonshot AI is seeking to settle a shareholder dispute involving claims potentially exceeding US$700 million ahead of a potential US$5 billion Hong Kong initial public offering (IPO). Allegations concerning asset transfers and corporate governance could complicate the AI startup's listing preparations.

South Korea's Nucode targets US drone identification market with Realtek-based module

Lily Hess — Mon, 12 Oct 2026 07:41:22 GMT

South Korean wireless communications module maker Nucode has signed a memorandum of understanding (MOU) with US drone identification and airspace intelligence provider Zing Drone Solutions to develop and supply electronic component modules for ultra-small and small-scale solutions. Nucode's NU87 module, which uses a Realtek chip, is among the products submitted for evaluation.

Microsoft calls for observable AI systems with emergency shutdown controls

DIGITIMES — Mon, 12 Oct 2026 07:40:57 GMT

Microsoft urged organizations to design artificial intelligence systems as observable, controllable infrastructure rather than opaque "black boxes," arguing that people must be able to monitor model behavior and stop it during an emergency. The company said the approach should apply to enterprise AI systems as they are tested, deployed, and connected to business data and tools.