DIGITIMES Asia: News and Insight of the Global Supply Chain

GIS takes AR and optical communication opportunities to pave transformation

Emily Kuo — Sun, 31 May 2026 04:25:53 GMT

Facing memory shortages and Sharp's plan to shut down its Guishan K2 plant by the end of 2026, GIS chairman Hsien-Ying Chou said the company faces greater operational challenges in the second half of 2026. However, its transformation strategy is accelerating. Among its new businesses, optical waveguide products used in AI glasses and other applications began small-volume shipments in the first quarter of 2026, while its optical communications business is targeting advanced optical source packaging and testing services. Both new application areas are expected to gradually ramp up in 2027, creating new growth momentum for revenue and gross margins.

AI demand and transport costs fuel continued price hikes in 2Q26

Emily Kuo — Sun, 31 May 2026 04:25:32 GMT

As the Middle East conflict escalates and demand for AI applications grows, product quotations continue to rise in the second quarter of 2026. Chen-Cheng Pan, chairman of silicone materials distributor Topco Scientific Materials, says upstream material shortages have also become severe. As applications in AI, optical communications, and robotics continue to expand, the proportion of revenue contributed by electronic materials is expected to increase further.

AUO sees automotive orders setting up revenue gains from 2026

Jingyue Hsiao — Sun, 31 May 2026 04:25:12 GMT

AUO said its automotive business has entered a high-growth phase, with annual orders for in-vehicle products now exceeding current-year revenue. The company expects revenue benefits from orders secured over the past two years to begin in the second half of 2026 or 2027, supporting growth at AUO Mobility Solutions.

Senao Networks projects 2026 growth as ISP expansion offsets memory shortage risks

DIGITIMES — Sun, 31 May 2026 04:24:56 GMT

Networking equipment maker Senao Networks reported that shareholders approved its 2025 financial report and a cash dividend of NT$3 (US$0.096) per share at a meeting on May 28, 2026, and the company said its shift into the internet service provider market was beginning to yield results while a persistent memory shortage could cut first-half 2026 shipments by 20% to 30% versus orders. The firm disclosed 2025 revenue of NT$15.036 billion and net profit attributable to the parent of NT$307 million, with earnings per share of NT$5.2.

The humanoid race is no longer about the robot — it's about who can deploy at scale

DIGITIMES — Sun, 31 May 2026 04:24:41 GMT

The conversation about humanoid robotics I observed over two days in Sunnyvale had a different quality from what I remembered a year ago. The demos were real. The deployments were live. The debate had shifted from "will this work" to "who gets to scale first" — and the answer is not obvious.

Huawei's Aito M9 turns the luxury SUV into a rolling AI platform

DIGITIMES — Sat, 30 May 2026 23:53:46 GMT

In aerodynamics, the Aito M9 underwent more than 100 engineering refinements, achieving a drag coefficient of just 0.249 Cd — among the lowest ever recorded for a full-size sport utility vehicle.

Yageo eyes AI liquid-cooling dealmaking, targets protection components

Charlene Chen — Sat, 30 May 2026 23:53:30 GMT

Yageo chairman Pierre Chen, who has become Taiwan's richest man, reiterated at the company's recent shareholders meeting that the group will not sit out opportunities in the AI applications market. He said Yageo will continue its long-running merger-and-acquisition strategy to drive transformation, raise product technology levels, and expand its full-spectrum integrated solutions.

Silicon Motion lays out AI-focused storage roadmap for edge, enterprise and automotive

DIGITIMES — Sat, 30 May 2026 23:53:14 GMT

Silicon Motion Technology (SMI) has released a portfolio of AI-optimized storage controllers and products ahead of Ccmputex 2026, targeting edge inference, AI PCs, enterprise AI infrastructure and automotive AI systems. The company said it will demonstrate new Edge SSD controllers, embedded UFS and eMMC controllers, enterprise NVMe solutions and automotive-grade storage aimed at improving data movement, latency and sustained workload performance for AI deployments.

AI demand and chip investment lift Taiwan exports and business outlook

DIGITIMES — Sat, 30 May 2026 23:53:02 GMT

Taiwan's economic outlook improved in April 2026 as rising AI demand and receding Middle East geopolitical risks boosted manufacturers' business sentiment, the National Development Council (NDC) said on May 28. The council reported gains in both its leading and coincident business climate indicators, signaling steady growth momentum for the island's export-oriented economy.

60% of smart factories underperform as South Korea expert eyes tacit knowledge for manufacturing AX

Jingyue Hsiao — Sat, 30 May 2026 23:52:45 GMT

South Korea is treating AI transformation as a future test of manufacturing competitiveness. The challenge now is not only installing smart systems, but converting frontline workers' tacit knowledge into standardized data that machines can use. For global industries, the outcome could shape how factories raise quality, productivity, and resilience.

Pentagon funding talks put US drone startups on wartime footing

DIGITIMES — Sat, 30 May 2026 23:52:29 GMT

The Trump administration is in talks to provide funding to several US drone companies, in a move that would mark a stronger federal push to expand domestic drone manufacturing and reduce the cost of battlefield systems that have become central to modern warfare.

Winbond accelerates custom memory transition

Charlene Chen — Sat, 30 May 2026 23:52:07 GMT

Winbond Chairman Arthur Chiao said market sentiment in the second half of 2026 would carry the strong momentum seen in the first half, with the overall market remaining in a supply shortage. He expects the current shortage will be difficult to ease in the near term, and said capacity constraints might not be resolved until the second half of 2027.

Taiwan Mobile sets sights on NT$1 trillion revenue as AI and enterprise services drive growth

DIGITIMES — Sat, 30 May 2026 23:51:58 GMT

Taiwan Mobile outlined plans to pursue a NT$1 trillion (US$31.88 billion) revenue target as it shifts emphasis to AI, enterprise services, and new technology businesses, executives said after the company's shareholders' meeting on May 29. Shareholders approved the 2025 financial report and a cash dividend of about NT$4.8 per share, while leadership framed the push into AI-enabled enterprise solutions as the next stage of growth.

Nan Ya Plastics targets three new business pillars to lift electronic materials to 60% by 2026

DIGITIMES — Sat, 30 May 2026 23:51:48 GMT

Nan Ya Plastics announced at its May 29 shareholders meeting that it would pivot into three new business areas — medical materials, semiconductor materials, and comprehensive power solutions — as part of a broader transformation planned for 2026 and 2027. Chairman Chia-Chau Wu said the move aims to raise the share of electronic materials in group revenue from just over 50% today to about 60% by 2026, driven by demand from AI infrastructure and high-performance computing.

LinkerBot deal brings AI bionic hands closer to mass market

DIGITIMES — Sat, 30 May 2026 23:51:38 GMT

LinkerBot, a leading Chinese developer of robotic dexterous hands, has acquired Jingling Zhikang in a strategic move that could push AI-powered bionic hands from high-cost rehabilitation devices into a broader assistive technology market.

Nvidia, Microsoft and Arm hint at 'new era of PC' ahead of Computex

Joseph(C) Chen — Sat, 30 May 2026 23:51:18 GMT

Nvidia, Microsoft and Arm posted identical messages on X on Friday, each displaying the words "A New Era of PC" alongside the geographic coordinates of Taipei — a coordinated tease that has sent the market speculating about what the three companies plan to announce at Computex 2026, which opens next week.

E Ink to unveil color e-paper platforms and large-format signage at Computex 2026

DIGITIMES — Sat, 30 May 2026 03:54:44 GMT

E Ink Holdings said it will showcase multiple color e-paper technologies and complete solutions at Computex 2026, presenting products aimed at outdoor and indoor advertising, smart retail and product-surface design. The exhibit will open around a premium shopping mall theme to demonstrate how e-paper can be applied across spatial and object surfaces for retail media networks and commercial signage.

AUO Micro LED CPO enters sampling stage

Jingyue Hsiao — Sat, 30 May 2026 03:54:18 GMT

AUO's entry into Micro LED co-packaged optics sampling could give the display maker a new growth path as it seeks to expand beyond panels. Chairman Paul Peng said the company is preparing optical communication modules as a future driver of revenue and profits.

Xpeng plays the long game: South Korea on hold, Europe in sight

DIGITIMES — Sat, 30 May 2026 00:37:46 GMT

Xpeng Motors, often described as "China's Tesla," is advancing on two very different international fronts — cautious and measured in South Korea, but increasingly strategic in Europe — while competing Chinese EV peers such as Zeekr accelerate their own overseas expansion.

AI server testing firm Wendell prepares IPO for high-power lab unit on surging rack equipment demand

Levi Li — Sat, 30 May 2026 00:37:05 GMT

Wendell Industrial Co. held its 2026 annual shareholders' meeting on May 26, where chairman Kao Chih-hung said shareholders approved a proposal for its subsidiary, Wendell Electrical Testing, to apply for an IPO. The plan is expected to be carried out in the fourth quarter or in 2027.

Intel makes first major move into India's semiconductor ecosystem with advanced glass substrate manufacturing MoU

DIGITIMES — Fri, 29 May 2026 23:53:09 GMT

India has signed a memorandum of understanding (MoU) with Intel and US-based 3DGS to establish an advanced packaging glass-core substrate manufacturing facility in the eastern state of Odisha, marking Intel's first significant participation in India's semiconductor manufacturing ecosystem beyond its existing design and technology operations.

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.