DIGITIMES: News and Insight of the Global Supply Chain

China's video AI dominance paves the way for world model boom

Yunnie Cheng — Thu, 13 Aug 2026 22:55:52 GMT

Chinese AI video-generation models are taking the world by storm. This competitive edge is not only disrupting Hollywood, but could also extend into the realm of "world models."

Gem Terminal's second-quarter profit hits 16-quarter high on copper and connector demand

DIGITIMES — Thu, 13 Aug 2026 22:55:38 GMT

Gem Terminal Industry said its net profit in the second quarter of 2026 reached a 16-quarter high as niche products and improved production efficiency in Taiwan and Vietnam lifted results. The terminal and copper materials supplier also reported strong revenue growth in July and for the first seven months of 2026.

ATEN lifts second-quarter profit on higher sales, pricing, utilization

DIGITIMES — Thu, 13 Aug 2026 22:55:17 GMT

ATEN International said its second-quarter 2026 revenue rose 19% year-over-year, while gross margin improved to 62% from 59% and pretax profit jumped 235%. The Taiwan-based keyboard-video-mouse (KVM) and enterprise connectivity vendor said stronger sales, higher capacity utilization, and narrower foreign exchange losses drove the gains.

LEO satellite communications, space computing drive rising importance of GaN power amplifiers

Scarlett Yu — Thu, 13 Aug 2026 22:54:38 GMT

DIGITIMES expects SpaceX to further accelerate Starlink satellite deployments in 2027, expanding network capacity and supporting faster rollout of its direct-to-cell (D2C) services.

Taiwan Microloops posts record July revenue as AI cooling demand lifts second-half outlook

DIGITIMES — Thu, 13 Aug 2026 22:54:23 GMT

Taiwan Microloops reported stronger second-quarter and first-half 2026 results, supported by rising shipments of cooling modules for AI server customers. The Taiwan-based supplier said the improvement came as new-model products began shipping to a major cloud service provider customer in the second quarter, helping margins recover after a temporary slowdown during the first-quarter product transition.

Kaori Heat Treatment to invest NT$3 billion in Taiwan and Thailand expansion

DIGITIMES — Thu, 13 Aug 2026 22:54:02 GMT

Kaori Heat Treatment has approved a major capacity expansion in Taiwan and Thailand as demand rises for AI cooling components and fuel cells. The heat-treatment maker said its board agreed to buy land and buildings in Taoyuan's Zhongli District for NT$2.38 billion and to build a new plant in Thailand with an investment cap of 700 million baht, bringing the two projects to about NT$3 billion.

ABF substrate boom lifts Eternal Precision prices 20%

Lily Hess — Thu, 13 Aug 2026 22:53:44 GMT

Strong Ajinomoto Build-Up Film (ABF) substrate demand has driven a surge in orders for vacuum laminating equipment, with Eternal Precision Mechanics, a unit of Eternal Materials, saying customer orders and inquiries jumped sharply around Christmas 2025 and have continued since. Its Japan plant has been running at full capacity since May this year.

Beyond silicon and copper: OCP APAC looks under the hood of future AI infrastructure

DIGITIMES — Thu, 13 Aug 2026 22:53:29 GMT

AI's appetite for compute is growing at such speeds that simply building bigger versions of today's data centers may no longer cut it.

Korea's CNT pellicle race heats up as aweXome Ray pushes toward EUV commercialization

DIGITIMES — Thu, 13 Aug 2026 22:53:07 GMT

As South Korea's major memory manufacturers race to secure next-generation lithography technologies for increasingly advanced process nodes, the approaching High-NA EUV era is adding urgency to the development of pellicles capable of handling higher optical and thermal requirements.

Quanta raises 2026 capex to NT$40B as AI visibility runs to 2028

Joseph(C) Chen — Thu, 13 Aug 2026 10:25:55 GMT

Quanta Computer told investors at its August 13 earnings call that customer AI product roadmaps and order visibility now extend into 2028, prompting the company to accelerate capacity expansion and raise its full-year 2026 capital expenditure target to NT$40 billion (US$1.28 billion) from NT$30 billion. Quanta expects its overall margin for 2026 to hold steady at first-half levels.

Oracle's transformation from enterprise software to AI powerhouse

DIGITIMES — Thu, 13 Aug 2026 09:40:50 GMT

Oracle and quantum computing leader Quantinuum have entered a multi-year strategic partnership to bring Quantinuum's next-generation quantum computer, Helios, directly into Oracle Cloud Infrastructure (OCI). The collaboration aims to create a unified computing ecosystem where enterprise customers, AI research labs, and scientific institutions can access quantum processing units (QPUs) alongside existing GPU clusters and high-performance computing (HPC) hardware.

China AI chip market nears 90% domestic share in 2026—Huawei on course to eclipse Nvidia

DIGITIMES — Thu, 13 Aug 2026 08:20:43 GMT

China's high-end AI chip market could become almost entirely domestic in 2026, with local solutions expected to take nearly 90% of sales and leave Nvidia, AMD and other overseas suppliers with about 10%.

Taiwan's carbon fee era begins, science parks roll out measures

Kevin Wang — Thu, 13 Aug 2026 08:07:23 GMT

Taiwan began charging companies for carbon emissions in 2026 as part of its push toward net-zero by 2050, with the initial filing deadline closing June 1. A total of 461 regulated factories and 240 companies have paid in full, generating NT$4.97 billion (US$154 million) in carbon fees, with the semiconductor industry paying the most: 45%, or NT$2.2 billion. The Ministry of Environment (MOENV) is also advancing a pilot phase for the emissions trading scheme (ETS) as Taiwan works to align with international carbon markets.

Taiwan's packaging and integration ecosystem positions it as the backbone of CPO scaling, Ayar Labs says

Scarlett Yu — Thu, 13 Aug 2026 07:26:13 GMT

The technical feasibility of co-packaged optics (CPO) has been demonstrated repeatedly at major industry conferences in recent years. At the 2026 OCP APAC Summit, however, Ayar Labs CEO Mark Wade shifted the focus from whether CPO works to whether it can scale commercially.

Taiwan notebook industry, 2Q 2026

DIGITIMES — Thu, 13 Aug 2026 07:22:26 GMT

Taiwan notebook industry, 2Q 2026

Qisda eyes AI infrastructure as fastest-growing business opportunity

Lily Hess — Thu, 13 Aug 2026 07:15:00 GMT

Qisda Chairman Peter Chen said infrastructure is the foundation that must first be built as AI compute demand surges. He said Qisda will not be absent from the fast-growing race, as the company steps up work on AI servers, data centers, 1.6T switches, and silicon photonics (SiPh).

Pegatron stocks AI server parts early as shortages spread through supply chain

DIGITIMES — Thu, 13 Aug 2026 07:05:09 GMT

Pegatron Corp. said in its second-quarter 2026 results that its server business posted strong gains and that it had already begun preparing for demand in the second half of 2026 while building inventory for the first half of 2027. The Taiwan-based electronics manufacturer said AI server momentum remained strong, but shortages across the upstream supply chain were still creating uncertainty.

Pegatron profit surges on AI server shipments and stronger product mix

DIGITIMES — Thu, 13 Aug 2026 07:04:59 GMT

Pegatron reported its second-quarter 2026 results on the 12th, saying net profit attributable to the parent company rose more than 14-fold year-on-year as shipments of information products and consumer electronics strengthened. The Taiwan-based electronics manufacturer said AI server demand is expected to remain a key growth driver in the second half of 2026.

Samsung delays High-NA EUV adoption until 1nm production in 2030

DIGITIMES — Thu, 13 Aug 2026 07:04:51 GMT

Samsung Electronics plans to introduce high-numerical-aperture extreme ultraviolet (High-NA EUV) lithography into mass production at its 1nm node around 2030, according to South Korean media reports. The move signals that the foundry giant is continuing work to deploy the next-generation chipmaking technology at advanced nodes.

LandMark Optoelectronics posts surge in profit on silicon photonics demand

DIGITIMES — Thu, 13 Aug 2026 07:04:32 GMT

LandMark Optoelectronics Corp. reported a sharp jump in revenue, margins, and profit in the second quarter of 2026, driven by strong demand for silicon photonics products and higher shipment volumes. The optical communications epitaxial wafer maker also said third-quarter 2026 revenue is expected to rise more than 20% quarter-on-quarter as both the company and its downstream foundry partners expand capacity.

Asus raises server outlook as AI demand lifts record second quarter results

DIGITIMES — Thu, 13 Aug 2026 07:04:21 GMT

Asus reported record second-quarter 2026 results driven by servers and PCs, while management pointed to strong demand for AI computing and cloud infrastructure. The Taiwan-based PC and hardware vendor said server order visibility remained high and lifted its full-year server revenue growth target from 100% to at least 150%.

Asus projects up to 150% server growth as AI demand lifts results

DIGITIMES — Thu, 13 Aug 2026 07:04:08 GMT

Asustek Computer said growth in its AI server and PC businesses pushed revenue, operating profit, and net profit to record highs in the second quarter of 2026. The Taiwan-based hardware maker also projected continued third-quarter growth across its main business lines as it expands in AI servers and new AI PC form factors.

SK Hynix expands EUV roadmap with High-NA tools and PSM adoption

DIGITIMES — Thu, 13 Aug 2026 07:03:56 GMT

SK hynix said it is advancing its use of extreme ultraviolet (EUV) lithography for the mass production of next-generation DRAM, with high-numerical-aperture (High-NA) EUV equipment introduced in the second half of 2025 and related research and development beginning in 2026. The memory maker is also adopting phase-shift mask (PSM) technology and other process materials to improve EUV performance as demand rises for higher-capacity, higher-performance chips.

South Korea plans new sovereign wealth fund to back AI, robots, supply chains

DIGITIMES — Thu, 13 Aug 2026 07:03:21 GMT

South Korea plans to establish a strategic investment account with at least 20 trillion won in assets within the Korea Investment Corporation in 2027 as it moves to strengthen its position in global advanced technology competition. According to Bloomberg, the fund will focus on artificial intelligence, robotics, and critical supply chains, while also extending to energy, batteries, power grid infrastructure, nuclear power, and quantum technology.

Zhen Ding targets 50% revenue share from AI servers, optical modules, IC substrates by 2030

Levi Li — Thu, 13 Aug 2026 07:03:00 GMT

Zhen Ding Tech (ZDT), a major PCB supplier, said at its second-quarter 2026 earnings conference on August 11 that rising investment in AI computing infrastructure is ushering in a new expansion cycle for high-end PCB demand. Chairman Charles Shen said the company expects strong revenue growth in 2026, while increasing contributions from AI-related products should narrow the traditional gap between peak and off-peak seasons. ZDT aims to raise the combined revenue share of servers, optical modules and IC substrates to 45–50% by 2030.

ChipMOS lifts capex for 2026-2027 on memory and AI ASIC growth

Charlene Chen — Thu, 13 Aug 2026 07:02:50 GMT

ChipMOS said strong demand for automotive panels and memory products drove revenue and profit to record highs in the second quarter of 2026. Chairman Shih-Jye Cheng said the company will raise capital expenditure (capex) for two consecutive years, in 2026 and 2027, to support memory, advanced logic, and new product demand. The company plans to boost capex to more than 25% of revenue as it begins a new expansion cycle.

Foxconn sees AI rack shipments grow multiple-fold in 2026 after 2Q operating profit rises 68%

Levi Li — Thu, 13 Aug 2026 07:02:21 GMT

Foxconn's AI server business powered stronger-than-expected second-quarter 2026 revenue and profit, with growth in its cloud network products segment helping operating profit rise far faster than sales. At its August 12 earnings conference, the company said stronger product mix and scale benefits lifted profitability, while continued AI infrastructure demand should sustain shipment growth through the second half.

Foxconn broadens beyond AI servers with EVs, robotics and Japan chip fab above 90% utilisation

Levi Li — Thu, 13 Aug 2026 07:02:11 GMT

Foxconn used its second-quarter 2026 earnings conference on August 12 to detail progress beyond its fast-growing AI server business, spanning cloud and data centre solutions, electric vehicles, robotics, semiconductors, satellite communications and AI platforms.

Pegatron sees 2026 server growth beat expectations

Eifeh Strom — Thu, 13 Aug 2026 07:01:52 GMT

Pegatron said its server business had posted significant growth in shipments and revenue so far this year, giving it strong confidence that it will meet—and likely exceed—its original goal of raising 2026 server revenue to ten times its 2025 level.

LGES, Lopal sign three-year LFP supply deal worth up to CNY27 billion

DIGITIMES — Thu, 13 Aug 2026 07:01:40 GMT

LG Energy Solution (LGES) and China's Jiangsu Lopal Tech have signed a three-year framework agreement covering up to CNY27 billion (approx. US$3.8 billion) in lithium iron phosphate (LFP) cathode material sales as the South Korean battery maker rapidly expands its energy storage system (ESS) business.

Samsung SDI-GM battery reset shows how ESS is reshaping the US EV supply chain

DIGITIMES — Thu, 13 Aug 2026 07:01:32 GMT

Samsung SDI is ending its battery manufacturing partnership with General Motors (GM) in Indiana, terminating a major EV joint venture — and sending ripples across the supply chain.

LG Chem reportedly wins cathode supply deal for Hyundai-LG Energy Solution's US battery venture

DIGITIMES — Thu, 13 Aug 2026 07:00:59 GMT

LG Chem has been selected as a cathode material supplier for HL-GA Battery Company, the US battery manufacturing joint venture between Hyundai Motor Group and LG Energy Solution, according to The Elec, which cited industry sources. The material accounts for roughly 40% of the cost of a battery cell, and the win is expected to help accelerate LG Chem's shift from petrochemicals toward a business focused on advanced materials.

Tencent starts paying for AI in cash, core business is covering the bill

DIGITIMES — Thu, 13 Aug 2026 07:00:46 GMT

Tencent Holdings used its second quarter to show what an AI build-out costs a company that can afford one. Capex reached CNY52.8 billion (US$7.81 billion), up 176% from a year earlier, and free cash flow turned negative for the quarter after large prepayments for computing capacity.

Cisco's falling margin shows hyperscaler AI is now big enough to reshape the business

DIGITIMES — Thu, 13 Aug 2026 07:00:37 GMT

Cisco Systems closed fiscal 2026 with results that would normally have looked decisively positive. Revenue rose 18% to US$17.3 billion, networking orders posted double-digit growth for an eighth straight quarter, and AI infrastructure orders from hyperscalers reached 4.5 times the previous year's total. Yet the market's focus shifted to a less comfortable signal: Cisco expects non-GAAP gross margin to ease next quarter, suggesting the hyperscaler business is now large enough to move the company's overall economics.

Tencent steps up AI infrastructure spending as compute costs cut into near-term profit

DIGITIMES — Thu, 13 Aug 2026 07:00:23 GMT

Tencent Holdings reported second-quarter 2026 revenue of CNY204.8 billion (US$30.30 billion), up 11% year-on-year, as it sharply increased artificial intelligence (AI) infrastructure spending. Management said on the company's August 12 earnings call that the spending is weighing on near-term earnings but is intended to build a "large and valuable AI-native new business."

DIGITIMES: News and Insight of the Global Supply Chain

China's video AI dominance paves the way for world model boom

Gem Terminal's second-quarter profit hits 16-quarter high on copper and connector demand

ATEN lifts second-quarter profit on higher sales, pricing, utilization

LEO satellite communications, space computing drive rising importance of GaN power amplifiers

Taiwan Microloops posts record July revenue as AI cooling demand lifts second-half outlook

Kaori Heat Treatment to invest NT$3 billion in Taiwan and Thailand expansion

ABF substrate boom lifts Eternal Precision prices 20%

Beyond silicon and copper: OCP APAC looks under the hood of future AI infrastructure

Korea's CNT pellicle race heats up as aweXome Ray pushes toward EUV commercialization

Quanta raises 2026 capex to NT$40B as AI visibility runs to 2028

Oracle's transformation from enterprise software to AI powerhouse

China AI chip market nears 90% domestic share in 2026&mdash;Huawei on course to eclipse Nvidia

Taiwan's carbon fee era begins, science parks roll out measures

Taiwan's packaging and integration ecosystem positions it as the backbone of CPO scaling, Ayar Labs says

Taiwan notebook industry, 2Q 2026

Qisda eyes AI infrastructure as fastest-growing business opportunity

Pegatron stocks AI server parts early as shortages spread through supply chain

Pegatron profit surges on AI server shipments and stronger product mix

Samsung delays High-NA EUV adoption until 1nm production in 2030

LandMark Optoelectronics posts surge in profit on silicon photonics demand

Asus raises server outlook as AI demand lifts record second quarter results

Asus projects up to 150% server growth as AI demand lifts results

SK Hynix expands EUV roadmap with High-NA tools and PSM adoption

South Korea plans new sovereign wealth fund to back AI, robots, supply chains

Zhen Ding targets 50% revenue share from AI servers, optical modules, IC substrates by 2030

ChipMOS lifts capex for 2026-2027 on memory and AI ASIC growth

Foxconn sees AI rack shipments grow multiple-fold in 2026 after 2Q operating profit rises 68%

Foxconn broadens beyond AI servers with EVs, robotics and Japan chip fab above 90% utilisation

Pegatron sees 2026 server growth beat expectations

LGES, Lopal sign three-year LFP supply deal worth up to CNY27 billion

Samsung SDI-GM battery reset shows how ESS is reshaping the US EV supply chain

LG Chem reportedly wins cathode supply deal for Hyundai-LG Energy Solution's US battery venture

Tencent starts paying for AI in cash, core business is covering the bill

Cisco's falling margin shows hyperscaler AI is now big enough to reshape the business

Tencent steps up AI infrastructure spending as compute costs cut into near-term profit

China AI chip market nears 90% domestic share in 2026—Huawei on course to eclipse Nvidia